The Bollinger Bands Histogram MT4 indicator is a variant of the traditional popular Bollinger Bands indicator.
The BB histogram indicator fluctuates between two extreme levels (1.1 and -1.1) in a separate MT4 trade window.
The indicator draws bullish and bearish bars which are positioned above and below the 0.00 zero level.
BB histogram bars positioned above the zero mark are considered bullish while below bearish.
The BB histogram needs to be traded in conjunction with a trend following indicator to get the most out of it.
For instance, combine it with a 75 period exponential moving average, Parabolic SAR or a 200 period simple moving average.
First take a look at the overall trend, when it is up, only take bullish signals from the BB histogram forex indicator.
Conversely, when the general trend is down, only take bearish signals from the BB histogram forex indicator.
The default Bollinger period is set to 14. Feel free to change it to suit your needs.
Free Download
Download the “bb-histogram-indicator.mq4” MT4 indicator
Indicator Chart (EUR/USD H1)
The EUR/USD 1-Hour chart below displays the Bollinger Bands Histogram Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Bollinger Bands Histogram MT4 forex indicator are easy to interpret and go as follows:
Buy Signal: Open buy trade when the BB histogram draws bars above the zero line (bullish signal). Be sure the overall trend is up. Confirm the trend with a trend following indicator.
Sell Signal: Open sell trade when the BB histogram draws bars below the zero line (bearish signal). Be sure the overall trend is down. Confirm the trend with a trend following indicator.
Trade Exit: Use your own method of trade exit.
Bollinger Bands Histogram + Cougar Indicator MT4 Scalping Strategy
This MT4 scalping strategy combines the momentum view of the Bollinger Bands Histogram indicator with the trend confirmation of the Cougar Forex Indicator.
It is designed for traders who prefer fast entries and small, consistent profits.
The method works well on M5, M15 and M30 charts, especially during active market sessions where volatility is higher.
The histogram identifies when the market gains directional pressure, while the Cougar arrows confirm whether the trend supports the move.
Buy Entry Rules
- The Bollinger Bands Histogram prints green bars above the zero line.
- The Cougar indicator plots a blue arrow signaling bullish trend direction.
- Enter a buy position only after the signal candle closes.
- Place a stop loss below the most recent minor swing low or use a fixed size relevant to the pair.
- Take profit at 10 to 20 pips for scalping or exit when the histogram weakens or Cougar shifts direction.
Sell Entry Rules
- The Bollinger Bands Histogram prints green bars below the zero line, showing bearish momentum.
- The Cougar indicator plots a red arrow confirming a downward trend.
- Enter a sell position when the candle closes.
- Set stop loss a few pips above the recent swing high or use a fixed pip distance.
- Take profit at 10 to 20 pips or exit when the histogram begins to fade or Cougar reverses.
Advantages
- Easy to read signals suitable for fast intraday trading.
- Double confirmation reduces incorrect entries.
- Useful on many FX pairs because it adapts well to short term volatility.
- Clear logic makes it simple to execute without overthinking.
Drawbacks
- False signals are more common in slow or ranging markets.
- Spreads and commissions can reduce profit if trading too frequently.
Example Case Study 1 (EURUSD M15)
During the early London session, EURUSD showed rising momentum as the Bollinger Bands Histogram formed green bars above the zero line.
Shortly after, the Cougar indicator printed a blue arrow.
A buy trade was taken after the candle close.
Stop loss was placed slightly under the nearest swing low.
The pair moved upward steadily and hit a 16 pip target.
Momentum slowed shortly after, showing that early entries with confirmation provide quick scalping opportunities.
Example Case Study 2 (AUDUSD M5)
Later in the New York session, AUDUSD experienced a short burst of volatility.
The Bollinger Bands Histogram printed green bars below zero, signaling fresh bearish pressure.
The Cougar indicator aligned with a red arrow confirming trend direction.
A sell position was entered at candle close.
Price moved quickly, producing a 14 pip profit before losing momentum.
Strategy Tips
- Trade pairs with low spreads and enough movement such as EURUSD, GBPUSD, USDJPY or AUDUSD.
- Focus on active market sessions where signals are cleaner.
- Use a fixed number of trades per day to avoid overtrading.
- Strengthen entries by waiting for two consecutive histogram bars in the same direction.
- Backtest each pair to find optimal stop loss and take profit distances.
- Reduce trade size during low liquidity periods.
Download Now
Download the “bb-histogram-indicator.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (Bollinger period) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Bollinger bands
