[blackcat] L1 Vitali Apirine MABW

25 apr 2022

Level 1

Background

Vitali Apirine’s articles in the July & August issues on 2021, “Moving Average Band Width”

Function

In “Moving Average Bands” (part 1, July 2021 issue) and “Moving Average Band Width” (part 2, August 2021 issue), author Vitali Apirine explains how moving average bands (MAB) can be used as a trend-following indicator by displaying the movement of a shorter-term moving average in relation to the movement of a longer-term moving average. The distance between the bands will widen as volatility increases and will narrow as volatility decreases. In part 2, the moving average band width (MABW) measures the percentage difference between the bands. Changes in this difference may indicate a forthcoming move or change in the trend.


Remarks

This is a Level 1 free and open source indicator.

Feedbacks are appreciated.

19 apr

Note di rilascio

OVERVIEW
The [blackcat] L1 Vitali Apirine MABW indicator focuses on measuring market volatility through Moving Average Bands (MABW). Based on concepts presented in Technical Analysis of Stocks & Commodities (TASC) August 2021, this script calculates and plots the bandwidth between moving averages, providing insights into market narrowness and potential breakouts 📊✅.

FEATURES

Calculates and plots Moving Average Bands (MABW) based on user-defined parameters.
Displays the current Band Width as an area plot in yellow.
Shows the Lowest Band Width over a specified period as an area plot in fuchsia.
Helps identify periods of low volatility and potential breakout points.
HOW TO USE

Add the indicator to your TradingView chart by selecting it from the indicators list.
Customize the input parameters according to your preferences:
Long Period: Sets the longer moving average period (default is 50).
Short Period: Defines the shorter moving average period (default is 10).
Multiplier: Adjusts the bandwidth calculation factor (default is 1.0).
Monitor the plotted band widths for signs of narrowing or widening trends.
Look for potential breakouts when the band width expands significantly.
INPUT PARAMETERS

Long Period: Determines the length of the longer moving average.
Short Period: Specifies the length of the shorter moving average.
Multiplier: Scales the bandwidth calculation.
LIMITATIONS

The indicator relies solely on moving averages, which might not capture all market dynamics.
False signals can occur in highly volatile or trending markets 🌪️.
Users should combine this tool with other forms of analysis for better decision-making.
NOTES

Ensure that you have sufficient historical data available for accurate calculations.
Test the indicator thoroughly on demo accounts before applying it to live trading 🔍.
Experiment with different input parameters to find optimal settings for various markets and timeframes.