BB20 Multicolor
A powerful market cycle identification indicator that overlays directly on your chart, color-coding price action across 8 distinct market states β from deep bearish to fully bullish β using the relationship between price and four key moving averages (MM20, MM50, MM100, MM200) combined with Bollinger Bands.
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HOW IT WORKS
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The indicator constantly evaluates the position of price relative to the four moving averages and assigns one of 8 colors to the Bollinger Band cloud zone, giving you an instant visual read of the current market cycle stage:
π΄ RED β Clear bearish trend
Price is below MM200. The market is dominated by sellers. Bias: short only.
π ORANGE β Technical bounce
Price is below MM200 but has recovered above MM20. A bounce within a bearish trend β not a reversal. Common bull trap zone.
π‘ YELLOW β Cycle phase 1
Price has crossed above MM50 but moving averages are still bearish. First signs of recovery, not yet confirmed.
π΅ BLUE β Trend reversal attempt
MM100 and MM50 are below MM200, but price is starting to climb between them. High volatility transition zone β watch closely.
β¬ GRAY β Neutral / weakening
Price is above MM200 but below MM100. The long-term structure is still bullish but momentum is fading. Caution zone.
π’ LIME GREEN β Cycle phase 2
Price and MM50 are above MM200. A new bullish cycle is being confirmed. Many institutional traders begin positioning here.
πͺ΅ TEAL β Healthy consolidation
Price is above MM200 and MM100 but pulling back toward MM50 or MM20. A normal pause within a bullish trend β potential re-entry zone.
π² DARK GREEN β Mature bullish cycle
All moving averages fully aligned: MM200 < MM50 < MM20 < Price. Cleanest trending environment. Minimum resistance to the upside.
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FEATURES
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β’ Cloud zones rendered natively with cTrader's Chart.DrawTriangle for smooth, professional-looking fills
β’ Bollinger Bands (upper and lower) displayed alongside the cloud
β’ All four moving averages individually toggleable (MM20, MM50, MM100, MM200)
β’ Configurable BB period, standard deviation factor, and cloud transparency
β’ Works on any instrument and any timeframe
β’ Fully open source β free forever
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HOW TO USE IT
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1. Use the color as a market context filter before taking any trade
2. Only look for longs when the background is green (lime or dark)
3. Only look for shorts when the background is red or orange
4. Use yellow, blue, and gray as transition zones β reduce size or wait for confirmation
5. Teal is your re-entry zone in an established bullish trend
Compatible with any trading strategy. Particularly effective when combined with price action, volume analysis, or sentiment-based approaches.
Install it, drop it on your chart, and instantly know what phase the market is in.
β οΈ RISK DISCLAIMER
Trading financial instruments involves risk and is not suitable for everyone. Always do your own analysis, manage your risk carefully, and never trade with money you cannot afford to lose.
This indicator is a technical analysis tool β not financial advice. Use it wisely.
