Here we take a look at the 12hr Bollinger Bands Width compared to price action
as a way of understanding volatility.
Indicator arguments are as follows:
Length = 20
Source = Close
StdDev = 2
Included with the Durbtrade Bollinger Bands Width indicator
is a zero line (white), and an Exponential Moving Average
with a length of 50 and an offset of 0 (blue line).
The dotted pink horizontal line is the most recent 12hr BB Width closing value
extended backwards for comparison.
The 12hr timeframe allows us to look at all BB Width values
since the March 2020 drop.
Above the BB Width is BTC price using standard candles,
and on the right is BTC price expressed as heikin-ashi candles.
Let's take a look:
Right from the start,
we can see how substantial and quick the March 2020 drop was,
with the BB Width reaching a peak of 0.902 :
Other high peaks include -
the Jan 2021 peak at 0.499 :
the May 2021 drop at 0.469 :
and the July 2021 launch into August at 0.406 :
Now,
let's take a closer look
at the most recent 12hr BB Width close value of 0.087 :
Let's also look at when the BB Width
has dropped below this level:
... as well as the BTC price during these moments :
... and finally,
let's compare them to eachother :
Conclusion :
I expect there to be a significant spike
of the Bollinger Bands Width in the near future.
I expect increased volatility, with a massive price swing.
As for price direction during the spike...
I'll leave that expectation up to you.
Thankyou, goodluck, and happy trading!
// Durbtrade
*Related Script :
as a way of understanding volatility.
Indicator arguments are as follows:
Length = 20
Source = Close
StdDev = 2
Included with the Durbtrade Bollinger Bands Width indicator
is a zero line (white), and an Exponential Moving Average
with a length of 50 and an offset of 0 (blue line).
The dotted pink horizontal line is the most recent 12hr BB Width closing value
extended backwards for comparison.
The 12hr timeframe allows us to look at all BB Width values
since the March 2020 drop.
Above the BB Width is BTC price using standard candles,
and on the right is BTC price expressed as heikin-ashi candles.
Let's take a look:
Right from the start,
we can see how substantial and quick the March 2020 drop was,
with the BB Width reaching a peak of 0.902 :
Other high peaks include -
the Jan 2021 peak at 0.499 :
the May 2021 drop at 0.469 :
and the July 2021 launch into August at 0.406 :
Now,
let's take a closer look
at the most recent 12hr BB Width close value of 0.087 :
Let's also look at when the BB Width
has dropped below this level:
... as well as the BTC price during these moments :
... and finally,
let's compare them to eachother :
Conclusion :
I expect there to be a significant spike
of the Bollinger Bands Width in the near future.
I expect increased volatility, with a massive price swing.
As for price direction during the spike...
I'll leave that expectation up to you.
Thankyou, goodluck, and happy trading!
// Durbtrade
*Related Script :
