Bollinger Bands Width Indicator MT5

The Bollinger Bands Width Indicator MT5 is a volatility tool that measures how far the upper and lower Bollinger Bands are separated.

When the bands move closer together, width falls and the market is showing reduced volatility.

When the bands spread apart, width rises as price movement becomes stronger.

The calculation is based on the standard Bollinger Band formula.

A common setup uses a 20-period simple moving average with a 2.0 standard deviation multiplier.

The basic relationship is: Band Width = Upper Band − Lower Band The upper band is generally calculated as: SMA(20) + 2 × Standard Deviation(20) The lower band is: SMA(20) − 2 × Standard Deviation(20) Some MT5 versions normalize this distance by the middle band, often producing a percentage-style reading: Width % = (Upper Band − Lower Band) ÷ Middle Band × 100 The exact display can vary between indicator versions, so traders should check the settings and calculation used by their specific MT5 file.

The key idea remains simple: rising width means volatility is expanding, while falling width means volatility is contracting.

How Traders Use Bollinger Band Width for Entries The most useful feature is the change in width, not a single number taken in isolation.

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