The Bollinger Bands and RSI Indicator MT4 is a hybrid oscillator for MetaTrader 4, designed by combining two widely used tools: Bollinger Bands and the Relative Strength Index (RSI).
By analyzing price volatility through Bollinger Bands and market momentum with RSI simultaneously, this indicator helps traders forecast potential reversal points. It plays a crucial role in optimizing both entry and exit positions across different markets.
On the 30-minute Binance Coin (BNB) chart, the RSI line dipped to the lower Bollinger Band, signaling an oversold market. The indicator then plotted a green arrow, marking the start of a bullish reversal.
On the 1-hour USD/CAD chart, the RSI line reached the upper Bollinger Band, highlighting overbought conditions. At this point, the indicator plotted a red arrow, confirming a bearish reversal and sell entry.
The Bollinger Bands and RSI Indicator for MT4 is a reliable technical tool that blends volatility and momentum analysis into one system. By detecting overbought and oversold zones, it provides timely buy and sell signals across multiple asset classes — including Forex, stocks, crypto, and commodities.
This combination makes it an effective solution for traders who want clear reversal signals and an improved edge in both short-term and medium-term trading strategies.
By analyzing price volatility through Bollinger Bands and market momentum with RSI simultaneously, this indicator helps traders forecast potential reversal points. It plays a crucial role in optimizing both entry and exit positions across different markets.
Indicator Specifications
- Categories: Oscillators, Bands & Channels
- Platform: MetaTrader 4
- Skill Level: Beginner to Intermediate
- Type: Reversal Indicator
- Timeframes: Multi-Timeframe
- Trading Styles: Day Trading, Scalping, Swing Trading
- Markets: Forex, Stocks, Crypto, Commodities
- Download: https://cdn.tradingfinder.com/file/514751/bollinger-bands-rsi-mt4-by-tflab.zip
How It Works
- Buy Signal (Oversold Condition):
When the RSI line touches the lower Bollinger Band, it indicates oversold conditions. The indicator then issues a green arrow on the chart as a buy signal. - Sell Signal (Overbought Condition):
When the RSI line touches the upper Bollinger Band, the market is considered overbought. A red arrow is drawn, signaling a potential sell position.
Example – Buy Setup
On the 30-minute Binance Coin (BNB) chart, the RSI line dipped to the lower Bollinger Band, signaling an oversold market. The indicator then plotted a green arrow, marking the start of a bullish reversal.
Example – Sell Setup
On the 1-hour USD/CAD chart, the RSI line reached the upper Bollinger Band, highlighting overbought conditions. At this point, the indicator plotted a red arrow, confirming a bearish reversal and sell entry.
⚙️ Settings Overview
- RSI Period: Number of bars for RSI calculation
- RSI Price: Type of price (close, open, etc.) used in RSI formula
- BB Periods: Length of Bollinger Bands
- BB Deviation: Standard deviation for band calculation
- BB Shift: Displacement of bands relative to the chart
- Alerts & Notifications: Customizable via sound, email, or push notifications
- Message Settings: Timeout duration and subject customization for alerts
✅ Conclusion
The Bollinger Bands and RSI Indicator for MT4 is a reliable technical tool that blends volatility and momentum analysis into one system. By detecting overbought and oversold zones, it provides timely buy and sell signals across multiple asset classes — including Forex, stocks, crypto, and commodities.
This combination makes it an effective solution for traders who want clear reversal signals and an improved edge in both short-term and medium-term trading strategies.