In essence, this is an advanced version of the Bollinger Bands
Specifically, in this indicator I have studied the movement of the price for a certain number of bars (BarsCount = 200). For this purpose, the MA with a period of 1 was used (MAPeriod). For that matter, any MA and any number of bars could have been used for analysis. As a result, two channels will be plotted. One displays the limits where the price ranges 68% of the time for the specified number of bars. The other shows the limits where the price ranges 95% of the time for the specified number of bars.
The Sigma Bands with the default parameters is almost identical to the Bollinger Bands with the same period, equal to BarsCount. But this version has the ability to plot Bollinger Bands not only with any period by changing the BarsCount,but also to plot is based on the selected MA type with any period.
Supported MA types:
- Simple MA
- Exponential MA
- Smoothed MA
- Linear-weighted MA
Prices that can be used for plotting the channel:
- Close price
- Open price
- The maximum price for the period (High)
- The minimum price for the period (Low)
- Median price (high + low)/2,
- Typical price (high + low + close)/3
- Weighted close price (high + low + close + close)/4
All these settings are not available for the standard Bollinger Bands.
By learning how to determine the limits where any indicator or price ranges most of the time, I eneded up with making an example of calculating the standard deviation and Sigma implemented as this indicator. Its formulas can now be adapted for any indicator you like. Sometimes, interesting results can be obtained for indicators that are plotted in separate windows, for example, the RSI, TVI or others.
The difference between conventional Bollinger Bands and Sigma Bands can be seen only when using non-default settings and MAPeriod > 1.
int MAPeriod = 1; // MA Period int BarsCount = 200; // Bars for calculating the deviation (Sigma) int TypeBandsMA = 0; // Type of MA for Bands int TypePriceMA = 0; // Applied price of MA color MAColor = clrNONE; // MA color
The analyzed MA is colorless by default. If you want to see it, set a color in the MAColor parameter.
MT4 Indicators – Download Instructions
Sigma Bands is a Metatrader 4 (MT4) indicator and the essence of the forex indicator is to transform the accumulated history data.
Sigma Bands provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust their strategy accordingly.
How to install Sigma Bands.mq4?
- Download Sigma Bands.mq4
- Copy Sigma Bands.mq4 to your Metatrader Directory / experts / indicators /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your indicator
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader Client
- Right click on Sigma Bands.mq4
- Attach to a chart
- Modify settings or press ok
- Indicator Sigma Bands.mq4 is available on your Chart
How to remove Sigma Bands.mq4 from your Metatrader 4 Chart?
- Select the Chart where is the Indicator running in your Metatrader Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
MT4 Indicators Download below: