Bollinger Bands Two Color Indicator MT5 Download - Free | Forex Indicator Download - MetaTrader 5 Resources

The Bollinger Bands two-color indicator is an enhanced version of the classic Bollinger Bands in the MT5 platform. This indicator is used to identify breakout points and trend direction and predict price reversal points.

This MT5 Band Channel indicator structure consists of a moving average line (MA) and two dynamic bands (above and below the candle) that change color in bullish and bearish trends.

Bollinger Bands Two-Color Indicator Specification Table

The specifications of the Bollinger Bands two-color indicator are as shown in the table below:

Overview of the Bollinger Bands Two-Color Indicator

The indicator consists of a moving average (MA) and two dynamic bands above and below the candle.

Use standard deviation to calculate bands for measuring Forex market volatility. These levels automatically expand and contract as price fluctuations change.

bullish trend conditions

According to the example below, when the price breaks above the moving average upward, the upper and lower bands turn blue.

The color change to blue indicates the beginning of a bullish trend. The moving average can be considered a support level in a bullish trend.

Bearish trend conditions

The 1-hour chart of the Binance Coin (BNB) cryptocurrency shows price reaction to ranges and moving averages in a bearish trend.

As shown in the chart below, price continues to return to the moving average after each breakout, providing an opportunity to enter a sell trade.

Indicator Settings

The settings of the Bollinger Bands Two-Color Indicator are customizable as follows:

• Chart Theme : Chart theme selection;
• Period : Calculate the period number of the oscillating line 20;
• Deviation : standard deviation value 2.0;
• Shift : The number of units to move the indicator forward or backward.

Conclusion

The Bollinger Bands two-color indicator detects potential breakouts and price changes by combining a moving average and two dynamic bands.

The main difference between it and the classic version of the Bollinger Bands indicator is the color changing bands that indicate bullish and bearish . This tool acts as an advanced trading indicator and is a support and resistance indicator for MT5, making it a valuable resource for traders.