Bollinger Bands - Fibonacci Ratios MetaTrader 4 Indicator & Signals

Derived from the original Bollinger bands.

The Bollinger Fibonacci ratios is a volatility based MetaTrader 4 Indicators but it does not use the standard deviation to calculate the width of the bands instead it uses a smoothed ATR that are multiplied with Fibonacci ratios of 1.618, 2.618, and 4.236.

The smoothed lines that are multiplied with Fibo ratios are then added or subtracted from the moving average.

This forms Three upper Fibo bands & 3 lower Fibo bands

The middle band forms the basis of the trend.

MetaTrader 4 Indicator & Generating Signals

This MT4 Indicator used to determine point of support and resistance for a currency pair.

Lines below represent support points while those above are resistance zones.

The outermost bands provide the strongest resistance/support.

Inner most bands provide least support/resistance.

The innermost band represents Fibo 38.20% retracement level

The second band represents Fib 50% retracement level

The outermost band represents Fib 61.8% retracement level

The MT4 Indicator is used to determine points where price might reverse. (Price Pullback Levels)

When price hits one of the lines & reverses then an entry or exit signal is generated.

However, it is always good to combine the signal with other confirmation MetaTrader 4 Indicators such as the moving average to confirm the signal as shown below.

MetaTrader 4 Technical Indicator