Best Bollinger Bands Setting for H1 Crude Oil Trading Chart

Adding MT4 Bollinger Bands Indicator

Step 1: Open the MetaTrader 4 Software Navigator Window

Open the MetaTrader 4 Navigator window as shown below - Go to "View" menu (then click it) and then choose the "Navigator" window (click), or From the Standard Tool Bar click the "Navigator" button or use keyboard short cut keys "Ctrl+N"

On the MetaTrader 4 Navigator window, select "Technical Indicators", (Double Click)

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Adding Bollinger Bands MT4 Indicator

Expand menu by clicking the expand button key marker (+) or double-click the "indicators" menu, after this the button key will appear as (-) and will now display & illustrate a list as shown below - choose the Bollinger Bands indicator from this list of oil indicators in order to add the Bollinger Bands indicator on the crude oil chart.

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How to Add Custom Bollinger Band Crude Oil Indicator on MT4

If the technical indicator you want to add is a custom Bollinger Bands indicator - for example if the Bollinger Bands technical indicator you want to add is a custom indicator you will need to first add this custom Bollinger Bands indicator on the MT4 software and then compile custom Bollinger Bands indicator so that the newly added Bollinger Bands custom oil indicator pops up on the list of custom indicators in MetaTrader 4 software.

To learn how to install Bollinger Bands indicator on MT4, how to add Bollinger Bands indicator window to MT4 and how to add Bollinger Bands oil custom MetaTrader 4 technical indicator on MT4 platform - How to add a custom Bollinger Band oil Indicator on MT4.

About Bollinger Bands Crude Oil Technical Indicator Guide

Oil Trading Bollinger Band Technical Analysis and Bollinger Bands Trading Signals

Bollinger bands are made up of 3 lines. The middle line is a Moving Average - 20 oil price period Simple Moving Average.

Bollinger bands indicators are then drawn at a distance away from the moving average technical indicator. These are the bands which form the lower & upper lines.

The distance where the bands are drawn is decided by another indicator called the standard deviation. Standard deviation is a measure of crude oil price volatility in the oil trading market.

Since the crude oil price volatility keeps on changing, the standard deviations will keep varying, & since Bollinger bands are drawn using the standard deviation the distance of the Bollinger bands will keep on adjusting themselves to the oil market volatility.

When the oil price becomes more volatile, the Bollinger Bands widen - Bollinger Bands indicators contract during less volatile periods.

The 3 Bollinger Bands are designed to encompass the majority of a oil price action movement. The middle Bollinger Band forms the basis for the crude oil price trend, typically a 20 crude oil price period simple moving average.

This middle Bollinger Band also serves as the base for the upper and lower Bollinger Bands. The upper Bollinger band's and lower Bollinger band's distance from the middle Bollinger band is determined by crude oil market price volatility. The upper band is drawn +2 standard deviations above the middle band while the lower band is drawn -2 standard deviations below the middle band.

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Oil Trading Bollinger Band Technical Analysis & Generating Crude Oil Trading Bollinger Band Signals

• Bollinger Bands provide a relative definition of high and low of oil price

• Bollinger Bands are used to identify periods of high & low volatility

• Bollinger Bands are used to identify periods when oil prices are at extreme areas

Bollinger Bands Consolidation

The Bollinger Bands tighten as volatility lessens, this identifies periods of crude oil price consolidation. Sharp crude oil price breakouts tend to occur after the Bollinger Bands indicators tighten.

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Bollinger Band Continuation Trading Signal

If oil prices break through the upper or lower Bollinger Band technical indicator & move outside the Bollinger Bands a continuation of the current crude oil price trend is expected.

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Bollinger Bands Reversal Trading Signals

Bottoms and tops made outside the Bollinger Bands followed by bottoms & tops made inside the Bollinger Bands signals for oil reversals in the crude oil price trend

The Bollinger Band Head Fake

Traders should be on look out for false break-outs known as Bollinger Bands whipsaws or Bollinger Bands head fakes.

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Oil Trading Price often breaks out in one direction immediately following the Bollinger Bands Squeeze causing many crude oil traders to think the crude oil price breakout will continue in that direction, only for crude oil price to quickly reverse and make the true and more significant crude oil price breakout in opposite direction.

Traders acting quickly on the initial crude oil price breakout often get caught on the wrong side of the crude oil price action - while those traders expecting a "false break-out" can quickly close-out their original oil trade positions and enter a trade in the direction of the crude oil price reversal. It is always good to combine Bollinger bands indicator with other confirmation oil technical indicators.

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