Enhanced Bollinger Bands for MetaTrader 4: A Trader's Guide

Welcome to our deep dive into the Enhanced Bollinger Bands! If you're looking to sharpen your trading strategies, this tool is a must-have in your arsenal.

Originally crafted from Metastock, let’s break down how to utilize this indicator effectively.

pds:=Input("Periods",2,200,20);
sd:=Input("Standard Deviations",.01,10,2);
alpha:=2/(pds+1);
mt:=alpha*C+(1-alpha)*(If(Cum(1)<pds,C,PREV));
ut:=alpha*mt+(1-alpha)*(If(Cum(1)<pds,C,PREV));
dt:=((2-alpha)*mt-ut)/(1-alpha);
mt2:=alpha*Abs(C-dt)+(1-alpha)*PREV;
ut2:=alpha*mt2+(1-alpha)*PREV;
dt2:=((2-alpha)*mt2-ut2)/(1-alpha);
but:=dt+sd*dt2;
blt:=dt-sd*dt2;
dt;
but;
blt

Formula Source: You can find the original formula at Trader Online and Guppy Traders.

Key Parameters:

• Periods: This sets the length of your period.
• Devs: This refers to the width of the bands.
• Price: Choose your price type:
  
  • 0 - Close
  • 1 - Open
  • 2 - High
  • 3 - Low
  • 4 - Median
  • 5 - Typical
  • 6 - Weighted

By understanding these parameters, you can better tailor the Enhanced Bollinger Bands to suit your trading style. Happy trading!