Hi everyone,
Sharing two custom MT4 indicators built around the same core concept: detecting volatility excess on Bollinger Bands and flagging potential mean-reversion zones.
Core logic:
The indicator measures how far price closes beyond the Bollinger Bands, expressed as a percentage of the current band width (not just "above/below the band" — it's normalized against the current volatility regime). When that excess crosses a threshold:
Upside excess → SELL signal (price overextended above the upper band)
Downside excess → BUY signal (price overextended below the lower band)
I'm running two versions, for two different purposes:
Volatility Excess — my go-to for intraday scalping. Faster, more reactive, tuned for catching short-term overextensions on lower timeframes. Volatility Excess 2 — includes an RSI confirmation filter (Sell only above 70, Buy only below 30) plus a "confirm on closed bar only" option to cut down on repainting/noise. This is the one with the blue and magenta arrows, and I use it specifically for spotting longer-term trend reversal zones rather than quick intraday entries — the RSI filter makes it noticeably more selective.Both use the same underlying excess-detection math, just calibrated differently depending on the timeframe/use case.
