Bollinger Bands Bicolor Indicator MT5 Download - Free - [TradingFinder]

The Bollinger Bands Bicolor 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 indicator's structure includes a moving average line (MA) and two dynamic bands (above and below the candles) that change color in Bullish and Bearish trends.

Bollinger Bands Bicolor Indicator Specifications Table

The specifications of the Bollinger Bands Bicolor indicator are shown in the table below:

Bullish Trend Conditions

According to the example below, the upper and lower bands change to blue when the price breaks the moving average line upwards.

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

Bearish Trend Conditions

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

As shown below, the price keeps returning to the moving average after each breakout, providing an opportunity to enter sell trades.

Indicator Settings

The settings for the Bollinger Bands Bicolor indicator are customizable, as shown below:

• Chart Theme: Chart theme selection;
• Period: Number of periods for calculating the oscillation line 20;
• Deviation: Standard deviation value 2.0;
• Shift: The number of units to shift the indicator forward or backward.

Conclusion

The Bollinger Bands Bicolor 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 Bollinger Bands is the color changing bands that indicate bullish and bearish trends.