Probability Envelopes (PBE)Introduction
In the world of trading, technical analysis is vital for making informed decisions about the future direction of an asset's price. One such tool is the use of indicators, mathematical calculations that can help traders predict market trends. This article delves into an innovative indicator called the Probability Envelopes Indicator, which offers valuable insights into the potential price levels an asset may reach based on historical data. This in-depth look explores the statistical foundations of the indicator, highlighting its key components and benefits.
Section 1: Calculating Price Movements with Log Returns and Percentages
The Probability Envelopes Indicator provides the option to use either log returns or percentage changes when calculating price movements. Each method has its advantages:
Log Returns: These are calculated as the natural logarithm of the ratio of the current price to the previous price. Log returns are considered more stable and less sensitive to extreme price fluctuations.
Percentage Changes: These are calculated as the percentage difference between the current price and the previous price. They are simpler to interpret and easier to understand for most traders.
Section 2: Understanding Mean, Variance, and Standard Deviation
The Probability Envelopes Indicator utilizes various statistical measures to analyze historical price movements:
Mean: This is the average of a set of numbers. In the context of this indicator, it represents the average price movement for bullish (green) and bearish (red) scenarios.
Variance: This measure represents the dispersion of data points in a dataset. A higher variance indicates a greater spread of data points from the mean. Variance is calculated as the average of the squared differences from the mean.
Standard Deviation: This is the square root of the variance. It is a measure of the amount of variation or dispersion in a dataset. In the context of this indicator, standard deviations are used to calculate the width of the bands around the expected mean.
Section 3: Analyzing Historical Price Movements and Probabilities
The Probability Envelopes Indicator examines historical price movements and calculates probabilities based on their frequency:
The indicator first identifies and categorizes price movements into bullish (green) and bearish (red) scenarios.
It then calculates the probability of each price movement occurring by dividing the frequency of the movement by the total number of occurrences in each category (bullish or bearish).
The expected green and red movements are calculated by multiplying the probabilities by their respective price movements and summing the results.
The total expected movement, or weighted average, is calculated by combining the expected green and red movements and dividing by the total number of occurrences.
Section 4: Constructing the Probability Envelopes
The Probability Envelopes Indicator utilizes the calculated statistics to construct its bands:
The expected mean is calculated using the total expected movement and applied to the current open price.
An exponential moving average (EMA) is used to smooth the expected mean, with the smoothing length determining the degree of responsiveness.
The upper and lower bands are calculated by adding and subtracting the mean green and red movements, respectively, along with their standard deviations multiplied by a user-defined multiplier.
Section 5: Benefits of the Probability Envelopes Indicator
The Probability Envelopes Indicator offers numerous advantages to traders:
Enhanced Decision-Making: By providing probability-based estimations of future price levels, the indicator can help traders make more informed decisions and potentially improve their trading strategies.
Versatility: The indicator is applicable to various financial instruments, such as stocks, forex, commodities, and cryptocurrencies, making it a valuable tool for traders in different markets.
Customization: The indicator's parameters, including the use of log returns, multiplier values, and smoothing length, can be adjusted according to the user's preferences and trading style. This flexibility allows traders to fine-tune the Probability Envelopes Indicator to better suit their needs and goals.
Risk Management: The Probability Envelopes Indicator can be used as a component of a risk management strategy by providing insight into potential price movements. By identifying potential areas of support and resistance, traders can set stop-loss and take-profit levels more effectively.
Visualization: The graphical representation of the indicator, with its clear upper and lower bands, makes it easy for traders to quickly assess the market and potential price levels.
Section 6: Integrating the Probability Envelopes Indicator into Your Trading Strategy
When incorporating the Probability Envelopes Indicator into your trading strategy, consider the following tips:
Confirmation Signals: Use the indicator in conjunction with other technical analysis tools, such as trend lines, moving averages, or oscillators, to confirm the strength and direction of the market trend.
Timeframes: Experiment with different timeframes to find the optimal settings for your trading strategy. Keep in mind that shorter timeframes may generate more frequent signals but may also increase the likelihood of false signals.
Risk Management: Always establish a proper risk management strategy that includes setting stop-loss and take-profit levels, as well as managing your position sizes.
Backtesting: Test the Probability Envelopes Indicator on historical data to evaluate its effectiveness and fine-tune its parameters to optimize your trading strategy.
Section 7: Cons and Limitations of the Probability Envelopes Indicator
While the Probability Envelopes Indicator offers several advantages to traders, it is essential to be aware of its potential cons and limitations. Understanding these can help you make better-informed decisions when incorporating the indicator into your trading strategy.
Lagging Nature: The Probability Envelopes Indicator is primarily based on historical data and price movements. As a result, it may be less responsive to real-time changes in market conditions, and the predicted price levels may not always accurately reflect the market's current state. This lagging nature can lead to late entry and exit signals.
False Signals: As with any technical analysis tool, the Probability Envelopes Indicator can generate false signals. These occur when the indicator suggests a potential price movement, but the market does not follow through. It is crucial to use other technical analysis tools to confirm the signals and minimize the impact of false signals on your trading decisions.
Complex Statistical Concepts: The Probability Envelopes Indicator relies on complex statistical concepts and calculations, which may be challenging to grasp for some traders, particularly beginners. This complexity can lead to misunderstandings and misuse of the indicator if not adequately understood.
Overemphasis on Past Data: While historical data can be informative, relying too heavily on past performance to predict future movements can be limiting. Market conditions can change rapidly, and relying solely on past data may not provide an accurate representation of the current market environment.
No Guarantees: The Probability Envelopes Indicator, like all technical analysis tools, cannot guarantee success. It is essential to approach trading with realistic expectations and understand that no indicator or strategy can provide foolproof results.
To overcome these limitations, it is crucial to combine the Probability Envelopes Indicator with other technical analysis tools and utilize a comprehensive risk management strategy. By doing so, you can better understand the market and increase your chances of success in the ever-changing financial markets.
Section 8: Probability Envelopes Indicator vs. Bollinger Bands
Bollinger Bands and the Probability Envelopes Indicator are both technical analysis tools designed to identify potential support and resistance levels, as well as potential trend reversals. However, they differ in their underlying concepts, calculations, and applications. This section will provide a deep dive into the differences between these two indicators and how they can complement each other in a trading strategy.
Underlying Concepts and Calculations:
Bollinger Bands:
Bollinger Bands are based on a simple moving average (SMA) of the price data, with upper and lower bands plotted at a specified number of standard deviations away from the SMA.
The distance between the bands widens during periods of increased price volatility and narrows during periods of low volatility, indicating potential trend reversals or breakouts.
The standard settings for Bollinger Bands typically involve a 20-period SMA and a 2 standard deviation distance for the upper and lower bands.
Probability Envelopes Indicator:
The Probability Envelopes Indicator calculates the expected price movements based on historical data and probabilities, utilizing mean and standard deviation calculations for both upward and downward price movements.
It generates upper and lower bands based on the calculated expected mean movement and the standard deviation of historical price changes, multiplied by a user-defined multiplier.
The Probability Envelopes Indicator also allows users to choose between using log returns or percentage changes for the calculations, adding flexibility to the indicator.
Key Differences:
Calculation Method: Bollinger Bands are based on a simple moving average and standard deviations, while the Probability Envelopes Indicator uses statistical probability calculations derived from historical price changes.
Flexibility: The Probability Envelopes Indicator allows users to choose between log returns or percentage changes and adjust the multiplier, offering more customization options compared to Bollinger Bands.
Risk Management: Bollinger Bands primarily focus on volatility, while the Probability Envelopes Indicator incorporates probability calculations to provide additional insights into potential price movements, which can be helpful for risk management purposes.
Complementary Use:
Using both Bollinger Bands and the Probability Envelopes Indicator in your trading strategy can offer valuable insights into market conditions and potential price levels.
Bollinger Bands can provide insights into market volatility and potential breakouts or trend reversals based on the widening or narrowing of the bands.
The Probability Envelopes Indicator can offer additional information on the expected price movements based on historical data and probabilities, which can be helpful in anticipating potential support and resistance levels.
Combining these two indicators can help traders to better understand market dynamics and increase their chances of identifying profitable trading opportunities.
In conclusion, while both Bollinger Bands and the Probability Envelopes Indicator aim to identify potential support and resistance levels, they differ significantly in their underlying concepts, calculations, and applications. By understanding these differences and incorporating both tools into your trading strategy, you can gain a more comprehensive understanding of the market and make more informed trading decisions.
In conclusion, the Probability Envelopes Indicator is a powerful and versatile technical analysis tool that offers unique insights into expected price movements based on historical data and probability calculations. It provides traders with the ability to identify potential support and resistance levels, as well as potential trend reversals. When compared to Bollinger Bands, the Probability Envelopes Indicator offers more customization options and incorporates probability-based calculations for a different perspective on market dynamics.
Although the Probability Envelopes Indicator has its limitations and potential cons, such as the reliance on historical data and the assumption that past performance is indicative of future results, it remains a valuable addition to any trader's toolkit. By using the Probability Envelopes Indicator in conjunction with other technical analysis tools, such as Bollinger Bands, traders can gain a more comprehensive understanding of the market and make more informed trading decisions.
Ultimately, the success of any trading strategy relies on the ability to interpret and apply multiple indicators effectively. The Probability Envelopes Indicator serves as a unique and valuable tool in this regard, providing traders with a deeper understanding of the market and its potential price movements. By utilizing this indicator in combination with other tools and techniques, traders can increase their chances of success and optimize their trading strategies.
Cerca negli script per "bollingerband"
Bollinger Band ribbonThis indicator plots 9 upper and lower lines with increasing length. Lines are 0.618 upper and lower level of Bollinger band.
Galactic Bollinger Bands Envelope (GBBE)The Galactic Bollinger Bands Envelope (GBBE) is a technical indicator that is used to identify potential areas of support and resistance in a trading instrument's price. The GBBE indicator is similar to the traditional Bollinger Bands (BB) indicator but offers certain advantages and improvements over the standard BB indicator.
The GBBE indicator is based on a similar concept to the BB indicator, where the bands are plotted around a moving average of the price. However, the GBBE indicator uses a more sophisticated calculation that accounts for the volatility of the instrument being analyzed. The GBBE indicator is designed to adjust to changing market conditions and provide more accurate signals.
One of the key strengths of the GBBE indicator is that it offers a clearer signal for traders to identify potential buy and sell opportunities. This is because the GBBE indicator has a tighter range compared to the standard BB indicator, which can sometimes generate false signals due to the wider range.
The GBBE indicator also has the advantage of being more responsive to sudden price movements, which makes it particularly useful for short-term traders who need to make quick decisions. The GBBE indicator is able to adjust to sudden market changes, which means that traders are less likely to miss out on trading opportunities.
Another advantage of the GBBE indicator is that it can be customized to suit individual trading styles and preferences. Traders can adjust the input parameters of the GBBE indicator, such as the length of the moving average and the multiplier, to optimize the indicator for different market conditions.
In conclusion, the Galactic Bollinger Bands Envelope (GBBE) is a powerful technical indicator that offers several advantages over the standard Bollinger Bands (BB) indicator. The GBBE indicator is designed to be more responsive and accurate, which makes it particularly useful for short-term traders. The GBBE indicator also offers traders more flexibility to customize the indicator to suit individual trading styles and preferences. Overall, the GBBE indicator is a valuable tool for traders looking to identify potential buy and sell opportunities in the markets.
Trend IndicatorThis indicator has different features:
1. Ichimoku = this indicator can plot Ichimoku calculated both in the common formula and with the volume average, you can choose the calculator method for each line.
2. Channel and Bands = this mode allows the user to choose from channel and band, "channel" shows the Keltner channel, and "band" shows the Bollinger bands. Both the indicators are calculated including the volume in the formula of the average midpoint.
3. Color candle = this function allows the user to see two different colors of candles on the chart, the positive color occurs when both the long-term average and the short team average of price calculated using the volume is above the two averages calculated without the volume. This function is great to analyze the volume pressure, useful to identify trend continuation and exhaustion.
4. Extreme reversal zones = this is a version of the Keltner channels calculated over a high number of candles and with high deviation, to identify the potential zones of reversal.
Note that in the "Ichimoku" indicator, the backline is the T.R.A.M.A. indicator, created and published open source by Lux Algo, which I thank for the script.
Weighted Deviation Bands [Loxx]What are Weighted Deviation Bands?
Variation of the Bollinger bands but it uses linear weighted average and weighted deviation via Mladen Rakic.
What is Weighted Deviation?
This weighted deviation is a sort of all linear weighted deviation. It uses linear weighting in all the steps calculated (which makes it different from the built in deviation in a case when linear weighted ma is used in the ma method). It is more responsive than the standard deviation
Included
Bar coloring
ZN PivotsDescription
This indicator is aimed at showing the pivot points of the trend by using Ichimoku cloud and Bollinger bands.
BOLL : Upper Bollinger Band. The red circle formed on it refers to the downward intersection of the MACD indicator. In the downward intersection, a red circle appears.
BOLL : Middle Bollinger Band.
BOLL : Lower Bollinger Band. The red circle formed on it refers to the downward intersection of the RSI indicator. In the downward intersection, a red circle appears.
ICHI : Ichimoku Leading A Line. The green circle formed on it refers to the upward intersection of the ICHIMOKU indicator.
ICHI : Ichimoku Leading B Line. The red circle formed on it refers to the downward intersection of the ICHIMOKU indicator.
Warning
As a result, this indicator should be expected to give an idea of the trend direction, not a trading signal.
Version
v1.0
CryptoGraph Entry BuilderA complete system to generate buy & sell signals, based on multiple indicators, timeframes and assets
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🟣 How it works
This indicator allows you to create buy & sell signals, based on multiple trigger conditions, placed in one easy to use TradingView indicator to produce alerts, backtest, reduce risk and increase profitability. This script is especially designed to be used with the CryptoGraph Strategizer indicator. Signals produced by this indicator, can be used as external input with the CryptoGraph Strategizer, by adding both indicators to your chart and selecting "External Input" as entry source in the inputs of the Strategizer indicator. From that point on, buy & sell signals generated by the Entry Builder, will be used for backtesting.
Each trigger or filtering condition is selectable and able to be combined using the selection boxes.
Trigger or filter conditions can be used on a different timeframes, and with different assets or coin pairs. Make sure to set higher timeframe filters, to a higher timeframe than your chart timeframe.
🟣 How to use
• Add the indicator to your chart
• Select an indicator you woud like to use for entry analysis. Combine more indicators for more entry filtering
• Configure entry conditions per indicator. It is recommended to add and configure one indicator at a time
• Analyse your buy/sell entries
• Connect to CryptoGraph Strategizer as external input source for backtesting purposes
🟣 Indicator Filters
• ATR :
Average True Range (ATR) is a tool used in technical analysis to measure volatility .
Possible options for ATR entry filtering are an ATR value greater/smaller than your input variable for trade entries, or the ATR crossing your input variable for trade entries.
This enables the possibility to only enter positions when the market has a certain degree of volatility .
• ADX :
The Average Directional Index ( ADX ) helps traders determine the strength of a trend, not its actual direction. It can be used to find out whether the
market is ranging or starting a new trend.
Possible options for ADX entry filtering are an ADX value greater/smaller than your input variable for trade entries, or the ADX crossing your input variable for trade entries.
• OBV :
The On Balance Volume indicator (OBV) is used in technical analysis to measure buying and selling pressure. It is a cumulative indicator meaning that on days where price went up, that day's volume is added to the cumulative OBV total.
Possible options for OBV entry filtering are Regular, Hidden or Regular&Hidden divergences. Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction.
• Moving Average :
Moving Average (MA) is a price based, lagging (or reactive) indicator that displays the average price of a security over a set period of time. A Moving Average is a good way to gauge momentum as well as to confirm trends, and define areas of support and resistance .
Possible options for MA entry filtering are price being above/below Moving Average 1, price crossing up/down Moving Average 1, Moving Average 1 being above/below Moving Average 2 and Moving Average 1 crossing up/down Moving Average 2.
• Supertrend :
Supertrend (ST) is a trend-following indicator based on Average True Range (ATR). The calculation of its single line combines trend detection and volatility . It can be used to detect changes in trend direction and to position stops.
Possible options for ST entry filtering are Supertrend being in upward/downward direction, or Supertrend changing direction.
• RSI :
The Relative Strength Index ( RSI ) is a well versed momentum based oscillator which is used to measure the speed (velocity) as well as the change (magnitude) of directional price movements.
Possible options for RSI entry filtering are RSI being smaller/greater than your input value, or RSI crossing up/down your input value.
• Stochastic RSI :
The Stochastic RSI indicator ( Stoch RSI ) is essentially an indicator of an indicator. It is used in technical analysis to provide a stochastic calculation to the RSI indicator. This means that it is a measure of RSI relative to its own high/low range over a user defined period of time.
Possible options for Stoch RSI entry filtering are Stoch RSI crossing below or above your input value.
• VWAP Bands :
Volume Weighted Average Price ( VWAP ) is a technical analysis tool used to measure the average price weighted by volume . VWAP is typically used with intraday charts as a way to determine the general direction of intraday prices.
We use standard deviations, determined by user input, to create VWAP bands.
Possible options for VWAP long entry filtering are: price being below the lower VWAP band, price crossing back up the lower VWAP band or price crossing down the lower VWAP band.
Possible options for VWAP short entry filtering are: price being above the upper VWAP band, price crossing back down the upper VWAP band, or price crossing up the upper VWAP band.
• Bollinger Bands :
Bollinger Bands (BB) are a widely popular technical analysis instrument created by John Bollinger in the early 1980’s. Bollinger Bands consist of a band of three lines which are plotted in relation to security prices. The line in the middle is usually a Simple Moving Average ( SMA ) set to a period of 20 days (the type of trend line and period can be changed by the trader; however a 20 day moving average is by far the most popular).
Possible options for BB long entry filtering are: price being below the lower Bollinger band , price crossing back up the lower Bollinger band or price crossing down the lower Bollinger band .
Possible options for BB short entry filtering are: price being above the upper Bollinger band , price crossing back down the upper Bollinger band , or price crossing up the upper Bollinger band .
• WaveTrend :
WaveTrend (WT) is a smoothed momentum oscillator which enables it to detect true reversals in an accurate manner.
Possible options for WT entry filtering are: Green/red dots below or above a certain WaveTrend value, Regular Divergence, Hidden Divergence and Regular&Hidden Divergence.
GKD-V Waddah Attar Explosion (WAE) [Loxx]Giga Kaleidoscope Waddah Attar Explosion (WAE) is a Volatility / Volume module included in Loxx's "Giga Kaleidoscope Modularized Trading System".
█ Giga Kaleidoscope Modularized Trading System
What is Loxx's "Giga Kaleidoscope Modularized Trading System"?
The Giga Kaleidoscope Modularized Trading System is a trading system built on the philosophy of the NNFX (No Nonsense Forex) algorithmic trading.
What is an NNFX algorithmic trading strategy?
The NNFX algorithm is built on the principles of trend, momentum, and volatility . There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility ; e.g., Average True Range , True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends.
4. Confirmation 2 - a technical indicator used to identify trends.
5. Continuation - a technical indicator used to identify trends.
6. Volatility / Volume - a technical indicator used to identify volatility / volume breakouts/breakdown.
7. Exit - a technical indicator used to determine when a trend is exhausted.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility , Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility / Volume , Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility / Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data between modules. Data is passed between each module as described below:
GKD-B => GKD-V => GKD-C(1) => GKD-C(2) => GKD-C(Continuation) => GKD-E => GKD-BT
That is, the Baseline indicator passes its data to Volatility / Volume . The Volatility / Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles
Baseline: Hull Moving Average
Volatility/Volume: Waddah Attar Explosion (WAE) as shown on the chart above
Confirmation 1: Halftrend Averages
Confirmation 2: Williams Percent Range
Continuation: Fisher Transform
Exit: Rex Oscillator
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD protocol chain.
Giga Kaleidoscope Modularized Trading System Signals (based on the NNFX algorithm)
Standard Entry
1. GKD-C Confirmation 1 Signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility / Volume agrees
Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility / Volume agrees
6. GKD-C Confirmation 1 signal was less than 7 candles prior
Continuation Entry
1. Standard Entry, Baseline Entry, or Pullback; entry triggered previously
2. GKD-B Baseline hasn't crossed since entry signal trigger
3. GKD-C Confirmation Continuation Indicator signals
4. GKD-C Confirmation 1 agrees
5. GKD-B Baseline agrees
6. GKD-C Confirmation 2 agrees
1-Candle Rule Standard Entry
1. GKD-C Confirmation 1 signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
Next Candle:
1. Price retraced (Long: close < close or Short: close > close)
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility / Volume agrees
1-Candle Rule Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 1 signal was less than 7 candles prior
Next Candle:
1. Price retraced (Long: close < close or Short: close > close)
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility / Volume Agrees
PullBack Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is beyond 1.0x Volatility of Baseline
Next Candle:
1. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility / Volume Agrees
█ Waddah Attar Explosion (WAE)
What is Waddah Attar Explosion (WAE)
Waddah Attar Explosion (WAE) Backtest is a momentum strategy that accounts for volatility in the market. It is the combination of MACD and Bollinger Bands with volatility cutoffs to determine entry and exit points. This version of WAE also includes a non-lag MACD option.
Other things to note
The GKD trading system requires that a GKD-V indicator be present in the indicator chain, but the GKD-V indicator doesn't need to be active. You can turn on/off the Volatility Ratio as you wish so you can backtest your trading strategy with the filter on or off.
Additional features will be added in future releases.
Faytterro Bandswhat is Faytterro Bands?
it is a channel indicator like "Bollinger Bands".
what it does?
creates a channel using standard deviations and means. thus giving users an idea about the expensive and cheap zones. It uses a special weighted moving average different from standard bollinger bands, it also averages not only price but also deviations.
how it does it?
it uses this formulas:
how to use it?
its usage is the same as "bollinger band".
length represents the number of candles to be taken into account, source represents the source of those candles and stdev represents the coefficient of the standard deviation.
you can use it with other indicators:
Z Pack BollingerOur new "Z Pack" indicator is a modified version of the traditional Bollinger Bands indicator, with a bunch of additional features what makes it a powerful tool that allows traders to make informed decisions based on the market's volatility and short-term trend.
The z-score of the Bollinger Bands indicator is a measure of how many standard deviations the current price is away from the moving average. This provides a more normalized view of the price action, which can be especially useful in identifying potential trend changes. In this form of indicator it is much easier to notice the most extreme deviations from the mean.
One of the main advantages of using this indicator is that it can help traders identify market conditions that are unusually far away from the mean, which can be indicative of a potential trend reversal or that, with sustained momentum a new trend may be about to begin.
Another advantage of the Z-Score Bollinger Bands indicator is that it can help traders identify when a market is trending. This is because when the Z-score is consistently high or low, it can indicate that a trend is in progress or that a trend may be reversing, respectively.
As for the additional features with which we have charged this indicator, there are many of them and they will be explained now.
Capital line
"Capital line" is based on a kernel regression of z score value over time.
The kernel regression is a non-parametric method that allows to estimate the underlying probability density function of a random variable and this way provides a smooth representation of the data. By using this method, the "Сapital line" is able to react to market changes much faster than traditional methods and gives traders a more accurate representation of the short-term trend.
Also we have developed a filter that reduces the number of false signals (you can toggle it in the settings). It is also possible to enable the display of only the capital line to focus only on it.
Divergence search
One of the unique features of the indicator is its ability to search for divergence between the z score and the price. A divergence occurs when the indicator and the price are moving in opposite directions, indicating a potential trend reversal. This allows traders to identify potential market turning points and make informed decisions.
It is possible to search for divergence on a Z-score, although it is not a common practice. In technical analysis, divergence is a method of comparing the movement of an asset's price with an indicator, such as an oscillator, in order to identify potential trend reversals. The same concept of divergence can be applied to a Z-score by comparing the movement of a value's Z-score to the underlying data, for example, by comparing the change in Z-score to the change in the underlying price of a stock. However, this is not a widely used approach and requires thoughtful analysis, but according to our observations, it provides quite important information about the potential exhaustion of the current trend.
By combining the z-score with the price, traders can look for divergences that might not be as obvious when looking at the indicator or the price alone. For example, if the z-score is trending higher while the price is trending lower, this could indicate a potential bullish reversal. Similarly, if the z-score is trending lower while the price is trending higher, this could indicate a potential bearish reversal.
Price Labels
The labels indicating the price of an asset that corresponds to a specific level of the standard deviation are a useful feature for traders because it allows them to quickly identify key levels of support and resistance. By placing limit orders at these levels, traders can potentially enter or exit trades at more favorable prices. This can help to improve the risk-reward ratio of their trades, as well as potentially increase the chances of a profitable outcome. Additionally, having these labels readily available can save traders time in identifying key levels of support and resistance, allowing them to focus on other aspects of their trading strategy.
Additionally, there is an option to analyze the previous volatility of the instrument for a specified time period. If the instrument has crossed the maximum standard deviation level at least once during the specified time period, a separate dashed line will be drawn on the z score chart, demonstrating how volatile the instrument is in the context of the specified time period. This is known as Extreme Mode.
The feature of analyzing the previous volatility of an instrument using the z score indicator can be beneficial for traders in a number of ways. One major advantage is that it allows traders to quickly assess the historical volatility of an instrument and compare it to current volatility levels. This can be useful for determining if an instrument is currently experiencing unusually high or low volatility, which can in turn inform trading decisions.
Another advantage of this feature is that it allows traders to quickly identify key levels of volatility that have been historically significant for the instrument. For example, if an instrument has frequently crossed the maximum deviation level during a specified time period, a trader may choose to place limit orders at that level in anticipation of the instrument reaching it again in the future.
The ability to see the price at a particular moment in time when the price breaks through the 4th(selectable) level of the z score can be an advantage for traders as it allows them to quickly identify key price levels and potentially place limit orders at those levels. This feature can be useful for traders who want to take advantage of market volatility or for those who want to set stop-loss or take-profit levels.
Additionally, the feature can be useful for identifying key levels of support and resistance, as well as for identifying potential entry and exit points for trades. By having the ability to quickly identify these key levels, traders can make more informed decisions about their trades and potentially increase their chances of success in the market.
Alerts
The "Z pack" indicator also includes an advanced, customisable alerting system, with alerts for z level touches, zero crossings, changes in the direction of the capital line, and confirmed or potential divergence. It allows them to stay informed of key developments in the market in real-time and take action accordingly.
For example, if the indicator generates an alert for a z level touch, a trader can place a market order at that level knowing that the price has reached a significant level of volatility. Similarly, an alert for a zero crossing (up/down) can indicate a change in trend, and a trader can use this information to adjust their strategy accordingly.
The alerts of confirmed or potential divergence can be especially useful for identifying potential turning points in the market and make decisions based on that.
NB! Remember, it is important to have a solid trading plan in place and to properly manage risk when trading. Our custom indicator can be a useful tool, but it should not be the only factor considered when making trade decisions.
Bollinger Bands [Anan]Hello friends,,
This is my own enhanced version of Bollinger Bands based on some backtesting,,
It's the same logic behind standard BB but instead of using length(period), I created a formula and used a "factor" to scale it up/down.
The formula is just average of averages of averages... (But it's backtested with good results)
I also added two standard deviations so that the distance between them will be the (over-bought/over-sold zones)
And finally added a squeeze indicator to identify the predicted price action movements..
You have the options to control everything like:
-Timeframe
-Source
-Calculation Method
-Length Factor
-StdDev#1
-StdDev#2
-Squeeze Factor
-Squeeze Threshold
GKD-C Momentum Breakout Bands [Loxx]Giga Kaleidoscope Momentum Breakout Bands is a Confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System".
█ Giga Kaleidoscope Modularized Trading System
What is Loxx's "Giga Kaleidoscope Modularized Trading System"?
The Giga Kaleidoscope Modularized Trading System is a trading system built on the philosophy of the NNFX (No Nonsense Forex) algorithmic trading.
What is an NNFX algorithmic trading strategy?
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data between modules. Data is passed between each module as described below:
GKD-B => GKD-V => GKD-C(1) => GKD-C(2) => GKD-C(Continuation) => GKD-E => GKD-BT
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles
Baseline: Hull Moving Average as shown on the chart above
Volatility/Volume: Volatility Ratio as shown on the chart above
Confirmation 1: Momentum Breakout Bands as shown on the chart above
Confirmation 2: Williams Percent Range
Continuation: Fisher Transform
Exit: Rex Oscillator
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD protocol chain.
Giga Kaleidoscope Modularized Trading System Signals (based on the NNFX algorithm)
Standard Entry
1. GKD-C Confirmation 1 Signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
6. GKD-C Confirmation 1 signal was less than 7 candles prior
Continuation Entry
1. Standard Entry, Baseline Entry, or Pullback; entry triggered previously
2. GKD-B Baseline hasn't crossed since entry signal trigger
3. GKD-C Confirmation Continuation Indicator signals
4. GKD-C Confirmation 1 agrees
5. GKD-B Baseline agrees
6. GKD-C Confirmation 2 agrees
1-Candle Rule Standard Entry
1. GKD-C Confirmation 1 signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
1-Candle Rule Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 1 signal was less than 7 candles prior
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
PullBack Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is beyond 1.0x Volatility of Baseline
Next Candle:
1. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
█ Momentum Breakout Bands
What is Momentum Breakout Bands?
Momentum Breakout Bands is a momentum oscillator with Bollinger Bands to filter noise by standard deviation. This is used for breakout trading and can be used on lower timeframes.
Requirements
Inputs
Confirmation 1 and Solo Confirmation: GKD-V Volatility / Volume indicator
Confirmation 2: GKD-C Confirmation indicator
Outputs
Confirmation 2 and Solo Confirmation: GKD-E Exit indicator
Confirmation 1: GKD-C Confirmation indicator
Continuation: GKD-E Exit indicator
Additional features will be added in future releases.
RSI TREND FILTERRSI TREND Filter on Chart
RSI scaled to fit on chart instead of oscillator, Trend Analysis is easy and Hidden Divergence is revealed using this indicator. This indicator is an aim to reduce confusing RSI Situations. The Oversold and Overbought lines help to determine the price conditions so its easy to avoid Traps.
Oversold and Overbought conditions are marked on Chart to make it useful to confirm a Buy or Sell Signals.
RSI 50 level is plotted with reference to EMA50 and Oversold and Overbought Conditions are calculated accordingly.
Uptrend: RSI Cloud / Candles above RSI 50 Level
Down Trend: RSI Cloud / Candles below RSI 50 Level
Sideways : Candles in the Gray Area above and below RSI 50 Level
Default RSI (14) : is the Candlestick pattern itself
Disclaimer: Use Solely at your own Risk.
Squeeze Range: Bollinger Bands / Keltner Channels [Whvntr]Presenting Squeeze Range: Bollinger Bands / Keltner Channels
TTMSqueeze method is a volatility and momentum indicator introduced by John Carter of Simpler Trading, which capitalizes on the tendency for price to break out strongly after consolidating in a tight trading range.
How did I make this indicator? The Bollinger Bands & Keltner Channels base scripts are from the standard indicators of their class in the Technicals section... I made this indicator first then noticed there were 3 others with a similar concept, but this differs in it's unique features and application of the TTMSqueeze strategy. This indicator plots the True Range of the Keltner Channel (Customizable in 'Bands Style" in the Inputs Menu) the instances the Bollinger Bands are within the range of the Keltner channel (the market just entered a squeeze).
Featuring: customizable Moving Averages
1. Exponential (Default for both BB & KC)
2. Simple
3. RMA (MA used in RSI )
Keltner channels have a multiplier of 2 & 3 on the Chart (3 being the outer).
How do I use this indicator? Once the teal dots are inside the solid red lines this would indicate that TTMperiod of low market volatility (the market is preparing itself for an explosive move up or down). Do some research and study how to use the TTMSqueeze method by John Carter. Disclaimer: not a guarantee of future favorable results.
Strategy Myth-Busting #7 - MACDBB+SSL+VSF - [MYN]This is part of a new series we are calling "Strategy Myth-Busting" where we take open public manual trading strategies and automate them. The goal is to not only validate the authenticity of the claims but to provide an automated version for traders who wish to trade autonomously.
Our seventh one we are automating is the "Magic MACD Indicator: Crazy Accurate Scalping Trading Strategy ( 74% Win Rate )" strategy from "TradeIQ" who claims to have backtested this manually and achieved 427% profit with a 74% winrate over 100 trades in just a 4 months. I was unable to emulate these results consistently accommodating for slippage and commission but even so the results and especially the high win-rate and low markdown is pretty impressive and quite respectable.
This strategy uses a combination of 3 open-source public indicators:
AK MACD BB v 1.00 by Algokid
SSL Hybrid by Mihkel00
Volume Strength Finder by Saravanan_Ragavan
This is considered a trend following Strategy. AK MACD BB is being used as the primary short term trend direction indicator with an interesting approach of using Bollinger Bands to define an upper and lower range and upon the MACD going above the upper Bollinger Bands, it's indicative of an up trend, where as if the MACD is below the lower Bollinger Band, it's indicative of a down trend. To eliminate false signals, SSL Hyrbid is used as a trend confirmation filter, confirming and eliminating false signals from the MACD BB. It does this by validating the price action is above the the EMA and the SSL is positive that is a confirmation of an uptrend. When the price action is below the EMA and the SSL is negative, that is an confirmation of a downtrend. To avoid taking trades during ranged markets, VSF Buyer's Strength is used so the buyers/sellers strength and must be above 50% or the trade will not be inititiated.
Trading Rules
5 min candles but other lower time frames even below 5m work quite well too.
Best results can be found by tweaking these 2 input parameters:
Number Of bars to look back to ensure MACD isn't above/below Zero Line
Number Of bars back to look for SSL pullback
Long Entry when these conditions are true
AK MACD BB BB issues a new continuation long signal. A new green circle must appear on the indicator and these circles should not be touching across the zero level while they were previously red
SSL Hybrid price action closes above the EMA and the line is blue color and then creates a pullback . The pullback is confirmed when the color changes from blue to gray or from blue to red.
VSF Buyers strength above 50% at the time the MACD indicator issues a new long signal.
Short Entry when these conditions are true
AK MACD BB issues a new continuation short signal. A new red circle must appear on the indicator and these circles should not be touching across the zero level while they were previously green
SSL Hybrid price action closes below the EMA and the line is red color then it has to create a pullback . The pullback is confirmed when the color changes from red to gray or from red to blue.
VSF Sellers strength above 50% at the time the MACD indicator issues a new short signal.
Stop Loss at EMA Line with TP Target 1.5x the risk
If you know of or have a strategy you want to see myth-busted or just have an idea for one, please feel free to message me.
Volume Weighted Standard Deviation (VWSD)The Volume Weighted Standard Deviation indicator is a custom technical analysis tool that uses the volume of trading to calculate the standard deviation of a stock's price. This indicator takes the source of data, the length of data, and the deviation as inputs, and calculates the volume weighted standard deviation using the values.
The indicator first calculates the mean price and mean volume by using simple moving average over the given length of data. Then it calculates the squared difference between the mean price and the actual price, multiplied by the volume. This gives a volume-weighted squared difference. The indicator then calculates the square root of the sum of the volume-weighted squared differences divided by the sum of the volumes over the given length of data. This gives the volume weighted standard deviation.
The indicator then plots the standard deviation and deviation as a band around the simple moving average of the source data, providing a clear view of the volatility of the stock.
In summary, the Volume Weighted Standard Deviation indicator is a powerful tool for measuring the volatility of a stock by taking into account the volume of trading. It uses the volume of trading to calculate the standard deviation of a stock's price, giving a more accurate representation of the volatility of the stock. It can be useful for traders to identify entry and exit points and make more informed trading decisions.
LIZ-ATR-Based EMA EnvelopesThis envelope has an "auto band adjustment function" that reflects the most recent volatility in the band width by ATR.
This makes it easy to handle without the need to change the band width according to the volatility of the stocks to be displayed.
The time periods and colors of each time frame that can be displayed and the central band of the envelope are as follows.
Monthly: 2-year line (light blue)
Weekly: 3-month line (black)
Daily: 1 month line (blue)
4-hourly: 1-week line (green)
1 hour: 24 hour line (purple)
30-minute: 12-hour line (light purple)
15-minute: 4-hour line (orange)
5min:2hr (skin color)
1 minute: 30 minute line (gray-blue)
30 seconds: 10 minute line (blue-purple)
15-seconds: 7.5-minute line (sky blue)
10-seconds: 5-minute line (brown)
5-seconds: 2-minute line (emerald green)
Depending on where the price resides in the band, the following situations can be identified
・When inside the first band: Trendless
・Between the first and second band: Normal trend
・Between the 2nd and 3rd band: Strong trend
・When the third line is exceeded: Overheat condition
The first range is painted in gray and encourages not to follow the trend. In addition, the "up" sign will automatically light up when the price is above this gray zone, the "middle" sign when the price is in the middle of the gray zone, and the "down" sign when the price is below the gray zone.
このエンベロープは直近のボラティリティーをATRによってバンド幅に反映させる、「オートバンド調整機能」を搭載しています。
そのため、表示させる銘柄のボラティリティーに合わせてバンド幅を変更する必要がなく扱いやすいです。
表示できる各時間足と、エンベロープの中心バンドの期間・色は、以下の通りです。
月足:2年線(水色)
週足:3ヶ月線(黒)
日足:1ヶ月線(青)
4時間足:1週間線(緑)
1時間足:24時間線(紫)
30分足:12時間線(薄紫)
15分足:4時間線(オレンジ)
5分足:2時間線(肌色)
1分足:30分線(グレーブルー)
30秒足:10分線(青紫)
15秒足:7.5分線(スカイブルー)
10秒足:5分線(茶色)
5秒足:2分線(エメラルドグリーン)
価格がバンドのどこに存在するかによって以下の状況がわかります。
・1本目のバンド内側にある時:トレンドレス
・1本目から2本目の間にある時:ノーマルトレンド
・2本目から3本目の間にある時:強いトレンド
・3本目をオーバーしている時:過熱状態
1本目の範囲はグレーで塗られ、トレンドフォローしない事を促します。また、このグレーゾーンの上に価格がある時は「上」、中にある時は「中」、下にあるときは「下」の文字サインが自動点灯します。
Mb Live Buy and Sell SignalsHello traders,
Today I am going to share with you an indicator I wrote by mixing other indicators to give me buy and sell signals. This indicators work on all FOREX pairs and Bitcoin , but it is less accurate on cryptocurrencies in general. The best result I have got is in 5 min chart with the default setting.
I have used RSI and its Moving Average to see if the market is getting saturated. If you have experience trading even for a bit, you realize trading with only RSI doesn't give you much, Hence I used Bollinger Band to find the market volatility, where its low and where it is high. Then I mixed these two to make a new indicator as you can see. For sake of this indicator, I made it as simple as possible with giving you less numbers to play with. The only thing you can play with are the RSI overbought, oversold and the middle line which I suggest let it be for Forex pairs. Also, you can play with timeframes if you would like to add a third indicator for yourself such as DC basis line which I use frequently with my other indicators . Unlike many buy and sell signals, This indicator does not work with trend and it is more based on market Volatility and strength of buyers and sellers (Oscillator) to give us PRZ . I did not want to share my script publicly as I spend lot of time mixing these indicators in different timeframes and different numbers but I hope you understand the basics behind the indicator and how it gives buy and sell signals.
For sake of time, I only did 100 back tests on EUR/JPY and here is the results.
ibb.co
The first trade was started on Oct 18th 2022 and last trade on Jan 6th 2023. That means in 83 days (including Sat and Sun) $1000 with risk to reward 2.5 became %5175. You have to consider it was only 100 back test and at least 300 back test is required for accurate result. There is a money management trick, which you exit %10 of the position at R/R 1 and bring the stop loss to the entry point, the second TP is R/R 2.5 which you exit the rest of the position. As you can see in the excel picture, instead of $5175 we have around $5625.
And now How I used this strategy to put my stop Loss. You can use Zig Zag as well if that makes it easier for you. I use price actions ,the last pivot or the nearest Support or resistance to put my stop loss a bit below (for buy signals) and above ( for sell signals). Here is an example:
you have to understand, you will trade with you money and you have to be critical and pessimistic. In backtests, if a trade hits your stop loss and then goes according the signals, Don't count it as a winning trade and put the emotions away. Here is an example:
If there is any question please write down in comment sections or contact me through social medias links.
Fibonacci Bollinger Bands (FBB)The Fibonacci Moving Average (FMA) is an indicator for financial markets that is calculated using the Fibonacci sequence and the metallic mean. The metallic mean is a type of average that is calculated by adding the source and the square root of the sum of the square of the source and 4, and then dividing the result by 2. The FMA is then calculated by using the metallic mean of the source as the weight for each period in the given length, and summing these weighted values. The standard deviation of the metallic mean of the source is also calculated using the FMA over the given length.
Users can input the source data and the length for the FMA calculation, as well as a series of boolean values to determine which levels of the FMA to plot on the chart. The levels include the standard deviation of the metallic mean of the source, as well as various multiples of the Fibonacci ratios between 0 and 2.618. The resulting FMA and standard deviation values can be plotted on the chart to help traders identify trends and potential entry and exit points in the market.
Double RSI + BBRSI stands for Relative Strength Index.
Bollinger Bands stands for a channel open by standard deviation values plotting upper, lower lines.
Double RSI with Bollinger bands adapted Bollinger bands to RSI not using overlay mode. It tries to filter fake signals while giving more good signals according to volatility even below overbought areas or above oversold areas. This way you can use greater values for RSI, like 25 and 100, increasing smoothness with less market noise.
We added an extra gap spacer to smooth Bollinger bands while widening the channel with a lower multiplier.
I found better results when Fast RSI crosses back into Bollinger bands channel.
You can play with the following settings:
• Source
Close is the most used
• Fast RSI length
Default to 25
• Slow RSI length
Default to 100
• RSI Smoothing
To filter out some graphic noise
• RSI Overbought, Oversold
Regular overbought, oversold lines handled by a single value. For 70/30, set it to 20 although with longer RSI something around 15 is enough.
• Bollinger Spacer
Ads thickness to the channel with lower multiplier
• Bollinger Length
Regular Bollinger length applied to slow RSI
• Bollinger Multiplier
Regular Bollinger multiplier applied to slow RSI
Disclaimer:
For study purposes only, trading without a good risk management can be regrettable, do your own research, always add confirmations, use it as is, at your own risk.
Volume Weighted Hull Moving Average Bollinger Bands (VWHBB)Title: "Volume Weighted Hull Moving Average Bollinger Bands Indicator for TradingView"
Abstract: This script presents a TradingView indicator that displays Bollinger Bands based on the volume weighted Hull Moving Average (VEHMA) of a financial asset. The VEHMA is a technical analysis tool that combines the reduced lag of the Hull Moving Average (HMA) with volume weighting to provide a more sensitive indicator of market trends and dynamics. The Bollinger Bands are a volatility indicator that plot upper and lower bands around a moving average, which can help traders identify potential trend changes and overbought or oversold conditions. The script allows the user to customize the VEHMA length and Bollinger Band deviation parameters.
Introduction: Bollinger Bands are a popular technical analysis tool used to identify potential trend changes and overbought or oversold conditions in the market. They are constructed by plotting upper and lower bands around a moving average, with the width of the bands determined by the volatility of the asset. The VEHMA is a variant of the Hull Moving Average (HMA) that combines the reduced lag of the HMA with volume weighting to provide a more sensitive indicator of market trends and dynamics.
Methodology: The VEHMA is calculated using a weighted average of two exponential moving averages (EMAs), with the weighting based on the volume of the asset and the length of the moving average. The Bollinger Bands are calculated by plotting the VEHMA plus and minus a standard deviation of the asset's price over a specified period. The standard deviation is a measure of the volatility of the asset and helps to adjust the width of the bands based on market conditions.
Implementation: The script is implemented in TradingView's PineScript language and can be easily added to any chart on the platform. The user can customize the VEHMA length and Bollinger Band deviation parameters to suit their trading strategy. The VEHMA, Bollinger Bands, and fill colors are plotted on the chart to provide a visual representation of the indicator.
Conclusion: The VEHMA Bollinger Bands indicator is a useful tool for traders looking to identify potential trend changes and overbought or oversold conditions in the market. This script provides a convenient and customizable implementation of the indicator for use in TradingView.
Oscillator ExtremesThe Oscillator Extremes indicator plots the normalized positioning of the selected oscillator versus the Bollinger Bands' upper and lower boundaries. Currently, this indicator has four different oscillators to choose from; RSI, CMO, CCI, and ROC.
When the oscillator pushes towards one extreme, it will bring the value of the prevailing line closer to zero. If the bullish or bearish line crosses the zero line, the oscillator is past the extreme of the Bollinger Band.
Example: If the RSI crosses over the upper boundary of the Bollinger, the bullish(green) line will cross under the zero line.
Crossovers of the bullish and bearish lines can indicate a shift in momentum and are a signal. Where the line crossing under, towards zero, is the prevailing trend. The plotted lines will highlight green(bullish) or red(bearish) to show the prevailing trend. This is similar to a DI+- crossover that is commonly associated with the ADX.
We have included an optional normalized ADX to help validate signals. The ADX will change color based on the slope of the ADX. Purple indicates a positive slope and white for a negative slope.
Average True Range Refurbished💡 Objective
This script is a rebuild of the pre-existing ATR indicator, with improvements and fine-tuning.
🪄Improvements
1. Normalization option (range 0 to 100)
2. Optional calculation of the ratio between current volatility and average volatility
3. Optional smoothing
4. Show a moving average
5. Show Bollinger Bands with 3 bands
6. Change bar colors according to ATR and Bollinger Bands
📚 Definition
'The Average True Range (ATR) is a tool used in technical analysis to measure volatility. Unlike many of today's popular indicators, the ATR is not used to indicate the direction of price. Rather, it is a metric used solely to measure volatility, especially volatility caused by price gaps or limit moves.'
(TradingView)
