ViVen-Multi Time Frame Bollinger Band StrategyThis indicator created to identify the strong Support and Resistance levels based on the Bollinger Bands. When two different time frame Bollinger Bands are travelling together then its a strong Support or Resistance Levels.
I have added 5 Min, 15 Min, 30 Min, 1 Hr and 1 Day time frame Bollinger Bands in one Chart. You can select and combine whichever the TF you want.
Default values considered - Period - 20 and Std.Dev is 2
You can on/off the indicator based on the requirement.
Trade plan:
BUY - When price comes near to the Bottom Bollinger Band level (look for candle confirmation is plus). If multiple Bollinger bands travels together then is Strong Support. (Exit if Price Breaks down the BB)
SELL - When price reaches the Upper Bollinger Band level (look for candle confirmation is plus). If multiple Bollinger bands travels together then is Strong Support. (Exit if Price Breaks Up the BB)
Middle Line - is the 20 SMA line
When the Gap between Upper and Lower Band is narrow then we can expect a trending movement soon.
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Bollinger Bands Breakout StrategyBollinger Bands Breakout Strategy is the strategy version of Bollinger Bands Filter study version, which can be found under my scripts page. The strategy goes long when price closes above the upper band and goes short signal when price closes below the lower band.
Bollinger Bands is a classic indicator that uses a simple moving average of 20 periods, along with plots of upper and lower bands that are 2 standard deviations away from the basis line. These bands help visualize price volatility and trend based on where the price is, in relation to the bands.
The strategy doesn't take into account any other parameters such as Volume / RSI / Fundamentals etc, so user must use discretion based on confirmations from another indicator or based on fundamentals. The strategy results are based on purely long and short trades and doesn't take into account any user defined targets or stop losses.
The strategy works great when the price closes above/below upper/lower bands with continuation on next bar. It is definitely useful to have this strategy or the Bollinger Bands filter along with other indicators to get early glimpse of breach/fail of bands on candle close during BB squeeze or based on volatility .
This can be used on Heikin Ashi candles for spotting trends, but HA candles are not recommended for trade entries as they don't reflect true price of the asset.
The strategy settings default is 55 SMA and 1 standard deviation for Bollinger Bands filter, but these can be changed from settings.
It is definitely worth reading the 22 rules of Bollinger Bands written by John Bollinger if interested in trading Bollinger Bands successfully.
Simple Bollinger Band Width PercentileI'm a big fan of The_Caretaker's BBWP and wanted to add it as a volatility indicator to some of my scripts, but since it is over 100 lines of code (plus spacing and comments) I wanted to find if there was a simpler way to get comparable results. SBBWP uses Pine 5 built in functions that I don't believe were available when The_Caretaker wrote BBPW. The main limitations compared to The_Caretaker's version is that it can only use SMA as its Basis Type and the colors are also not as pretty. I have not included alerts or scale lines since I'm not trying to replace BBWP, just give a simple example that you can easily build in to your scripts.
Full credit and respect to The_Caretaker!
Bollinger Band Width PercentileIntroducing the Bollinger Band Width Percentile
Definitions :
Bollinger Band Width Percentile is derived from the Bollinger Band Width indicator.
It shows the percentage of bars over a specified lookback period that the Bollinger Band Width was less than the current Bollinger Band Width.
Bollinger Band Width is derived from the Bollinger Bands® indicator.
It quantitatively measures the width between the Upper and Lower Bands of the Bollinger Bands.
Bollinger Bands® is a volatility-based indicator.
It consists of three lines which are plotted in relation to a security's price.
The Middle Line is typically a Simple Moving Average.
The Upper and Lower Bands are typically 2 standard deviations above, and below the SMA (Middle Line).
Volatility is a statistical measure of the dispersion of returns for a given security or market index, measured by the standard deviation of logarithmic returns.
The Broad Concept :
Quoting Tradingview specifically for commonly noted limitations of the BBW indicator which I have based this indicator on....
“ Bollinger Bands Width (BBW) outputs a Percentage Difference between the Upper Band and the Lower Band.
This value is used to define the narrowness of the bands.
What needs to be understood however is that a trader cannot simply look at the BBW value and determine if the Band is truly narrow or not.
The significance of an instruments relative narrowness changes depending on the instrument or security in question.
What is considered narrow for one security may not be for another.
What is considered narrow for one security may even change within the scope of the same security depending on the timeframe.
In order to accurately gauge the significance of a narrowing of the bands, a technical analyst will need to research past BBW fluctuations and price performance to increase trading accuracy. ”
Here I present the Bollinger Band Width Percentile as a refinement of the BBW to somewhat overcome the limitations cited above.
Much of the work researching past BBW fluctuations, and making relative comparisons is done naturally by calculating the Bollinger Band Width Percentile.
This calculation also means that it can be read in a similar fashion across assets, greatly simplifying the interpretation of it.
Plotted Components of the Bollinger Band Width Percentile indicator :
Scale High
Mid Line
Scale Low
BBWP plot
Moving Average 1
Moving Average 2
Extreme High Alert
Extreme Low Alert
Bollinger Band Width Percentile Properties:
BBWP Length
The time period to be used in calculating the Moving average which creates the Basis for the BBW component of the BBWP.
Basis Type
The type of moving average to be used as the Basis for the BBW component of the BBWP.
BBWP Lookback
The lookback period to be used in calculating the BBWP itself.
BBWP Plot settings
The BBWP plot settings give a choice between a user defined solid color, and a choice of "Blue Green Red", or "Blue Red" spectrum palettes.
Moving Averages
Has 2 Optional User definable and adjustable moving averages of the BBWP.
Visual Alerts
Optional User adjustable High and low Signal columns.
How to read the BBWP :
A BBWP read of 95 % ... means that the current BBW level is greater than 95% of the lookback period.
A BBWP read of 5 % .... means that the current BBW level is lower than 95% of the lookback period.
Proposed interpretations :
When the BBWP gets above 90 % and particularly when it hits 100% ... this can be a signal that volatility is reaching a maximum and that a macro High or Low is about to be set.
When the BBWP gets below 10 % and particularly when it hits 0% ...... this can be a signal that volatility is reaching a minimum and that there could be a violent range breakout into a trending move.
When the BBWP hits a low level < 5 % and then gets above its moving average ...... this can be an early signal that a consolidation phase is ending and a trending move is beginning.
When the BBWP hits a high level > 95 % and then falls below its moving average ... this can be an early signal that a trending move is ending and a consolidation phase is beginning.
Essential knowledge :
The BBWP was designed with the daily timeframe in mind, but technical analysists may find use for it on other time frames also.
High and Low BBWP readings do not entail any direction bias.
Deeper Concepts :
In finance, “mean reversion” is the assumption that a financial instrument's price will tend to move towards the average price over time.
If we apply that same logic to volatility as represented here by the Bollinger band width percentile, the assumption is that the Bollinger band width percentile will tend to contract from extreme highs, and expand from extreme lows over time corresponding to repeated phases of contraction and expansion of volatility.
It is clear that for most assets there are periods of directional trending behavior followed by periods of “consolidation” ( trading sideways in a range ).
This often ends with a tightening range under reducing volume and volatility ( popularly known as “the squeeze” ).
The squeeze typically ends with a “breakout” from the range characterized by a rapid increase in volume, and volatility when price action again trends directionally, and the cycle repeats.
Typical Use Cases :
The Bollinger Band Width Percentile may be especially useful for Options traders, as it can provide a bias for when Options are relatively expensive, or inexpensive from a Volatility (Vega) perspective.
When the Bollinger Band Width Percentile is relatively high ( 85 percentile or above ) it may be more advantageous to be a net seller of Vega.
When the Bollinger Band Width Percentile is relatively low ( 15 percentile or below ) it may be advantageous to be net long Vega.
Here we examine a number of actionable signals on BTCUSD daily timeframe using the BBWP and a momentum oscillator ( using the TSI here but can equally be used with Bollinger bands, moving averages, or the traders preferred momentum oscillator ).
In this first case we will examine how a spot trader and an options trader could each use a low BBWP read to alert them to a good potential trade setup.
note: using a period of 30 for both the Bollinger bands and the BBWP period ( approximately a month ) and a BBWP lookback of 350 ( approximately a year )
As we see the Bollinger Bands have gradually contracted while price action trended down and the BBWP also fell consistently while below its moving average ( denoting falling volatility ) down to an extremely low level <5% until it broke above its moving average along with a break of range to the upside ( signaling the end of the consolidation at a low level and the beginning of a new trending move to the upside with expanding volatility).
In this next case we will continue to follow the price action presuming that the traders have taken or locked in profit at reasonable take profit levels from the previous trade setup.
Here we see the contraction of the Bollinger bands, and the BBWP alongside price action breaking below the BB Basis giving a warning that the trending move to the upside is likely over.
We then see the BBWP rising and getting above its moving average while price action fails to get above the BB Basis, likewise the TSI fails to get above its signal line and actually crosses below its zeroline.
The trader would normally take this as a signal that the next trending move could be to the downside.
The next trending move turns out to be a dramatic downside move which causes the BBWP to hit 100% signaling that volatility is likely to hit a maximum giving good opportunities for profitable trades to the skilled trader as outlined.
Limitations :
Here we will look at 2 cases where blindly taking BBWP signals could cause the trader to take a failed trade.
In this first example we will look at blindly taking a low volatility options trade
Low Volatility and corresponding low BBWP levels do not automatically mean there has to be expansion immediately, these periods of extreme low volatility can go on for quite some time.
In this second example we will look at blindly taking a high volatility spot short trade
High volatility and corresponding high BBWP levels do not automatically mean there has to be a macro high and contraction of volatility immediately, these periods of extreme high volatility can also go on for quite some time, hence the famous saying "The trend is your friend until the end of the trend" and lesser well known, but equally valid saying "never try to short the top of a parabolic blow off top"
Markets are variable and past performance is no guarantee of future results, this is not financial advice, I am not a financial advisor.
Final thoughts
The BBWP is an improvement over the BBW in my opinion, and is a novel, and useful addition to a Technical Analysts toolkit.
It is not a standalone indicator and is meant to be used in conjunction with other tools for direction bias, and Good Risk Management to base sound trades off.
John Bollinger has suggested using Bolliger bands, and its related indicators with two or three other non-correlated indicators that provide more direct market signals.
He believes it is crucial to use indicators based on different types of data.
Some of his favored technical techniques are moving average divergence/convergence (MACD), on-balance volume and relative strength index (RSI).
Thanks
Massive respect to John Bollinger, long-time technician of the markets, and legendary creator of both the Bollinger Bands® in the 1980´s, and the Bollinger band Width indicator in 2010 which this indicator is based on.
His work continues to inspire, decades after he brought the original Bollinger Bands to the market.
Much respect also to Eric Crown who gave me the fundamental knowledge of Technical Analysis, and Options trading.
Greedy DCA█ OVERVIEW
Detect price crashes in volatile conditions. This is an indicator for a greedy dollar cost average (DCA) strategy. That is, for people who want to repeatedly buy an asset over time when its price is crashing.
█ CONCEPTS
Price crashes are indicated if the price falls below one or more of the 4 lower Bollinger Bands which are calculated with increasing multipliers for the standard deviation.
In these conditions, the price is far below the average. Therefore they are considered good buying opportunities.
No buy signals are emitted if the Bollinger Bands are tight, i.e. if the bandwidth (upper -lower band) is below the value of the moving average multiplied with a threshold factor. This ensures that signals are only emitted if the conditions are highly volatile.
The Bollinger Bands are calculated based on the daily candles, irrespective the chart time frame. This allows to check the strategy on lower time frames
Bollinger Bands Breakout Oscillator [LuxAlgo]The Bollinger Bands Breakout Oscillator is an oscillator returning two series quantifying the significance of breakouts between the price and the extremities of the Bollinger Bands indicator.
Settings
Length: Period of the Bollinger Bands indicator
Mult: Controls the width of the Bollinger Bands
Src: Input source of the indicator
Usage
Each series is calculated by summing the distance between price and a respective Bollinger Bands extremity in the case price is outside this extremity and divided by the sum of the absolute distance between price and a respective extremity. This sum is done over the most recent Length bars.
Bullish breakouts are represented by the green areas of the indicator, while bearish breakouts are represented by the red areas of the indicator.
The oscillator can determine the presence of an uptrend when the bullish area is superior to the bearish area, while a downtrend is indicated by a bearish area being superior to the bullish one. The significance of the breakout is determined by the amplitude of each area, with higher amplitudes indicating more significant breakouts or strong trends.
Using higher Mult values would naturally return wider bands, which would induce less frequent breakouts, this would be highlighted by the oscillator.
In the chart above we can see the oscillator using a multiplicative factor of 2.
Compare Crypto Bollinger Bands//This is not financial advice, I am not a financial advisor.
//What are volatility tokens?
//Volatility tokens are ERC-20 tokens that aim to track the implied volatility of crypto markets.
//Volatility tokens get their exposure to an asset’s implied volatility using FTX MOVE contracts.
//There are currently two volatility tokens: BVOL and IBVOL.
//BVOL targets tracking the daily returns of being 1x long the implied volatility of BTC
//IBVOL targets tracking the daily returns of being 1x short the implied volatility of BTC.
/////////////////////////////////////////////////////////////////
CAN USE ON ANY CRYPTO CHART AS BINANCE:BTCUSD is still the most dominant crypto, positive volatility for BTC is positive for all.
/////////////////////////////////////////////////////////////////
//The Code.
//The blue line (ChartLine) is the current chart plotted on in Bollinger
//The red line (BVOLLine) plots the implied volatility of BTC
//The green line (IBVOLLine) plot the inverse implied volatility of BTC
//The orange line (TOTALLine) plots how well the crypto market is performing on the Bolling scale. The higher the number the better.
//There are 2 horizontal lines, 0.40 at the bottom & 0.60 at the top
/////////To Buy
//1. The blue line (ChartLine) must be higher than the green line (IBVOLLine)
//2. The green line (IBVOLLine) must be higher than the red line (BVOLLine)
//3. The red line (BVOLLine) must be less than 0.40 // This also acts as a trendsetter
//4. The orange line (TOTALLine) MUST be greater than the red line. This means that the crypto market is positive.
//5.IF THE BLUE LINE (ChartLine) IS GREATER THAN THE ORANGE LINE (TOTALLine) IT MEANS YOUR CRYPTO IS OUTPERFOMING THE MARKET {good for short term explosive bars}
//6. If the orange line (TOTALLine) is higher than your current chart, say BTCUSD. And BTC is going up to. It just means BTC is going up slowly. it's fine as long as they are moving in the same position.
//5. I use this on the 4hr, 1D, 1W timeframes
///////To Exit
//1.If the blue line (ChartLine) crosses under the green line (IBVOLLine) exit{ works best on 4hr,1D, 1W to avoid fakes}
//2.If the red line crosses over the green line when long. {close positions, or watch positions} It means negative volatility is wining
Newton theory (Bollinger Band Breakout)Initial capital 1000 USD
Order size 10%
Commission 0.3% with slippage
Timeframe 4h
This is Simple Bollinger Band Trend find out strategy.
I'm using the usual trailing offset as an exit for this strategy.
using 1x leverage to go long short within 3years backtest result more then 200% for all usd pair.
in next version i will try to find out more optimize sma,std,sl,tp parameter by using freqtrade hyperparameter optimization.
Happy Trading :)
Luckscout's Double Bollinger Bands StrategyLong Trade Setups:
To go long (to buy), you have to wait for one of the candlesticks to close above the BB upper band. (background color is green)
Short Trade Setups:
To go short (to sell), you have to wait for one of the candlesticks to close below the BB lower band. (background color is red)
How To Maximize Your Profit?
As I explained above, this trading system is good in catching the trends. Therefore, you’d better to take the advantage of the strong movements and maximize your profit.
When there is a strong trade setup, you can also take two positions with the same stop loss, when there is a trade setup based on the Double Bollinger Bands trading system. Set a 2 x SL target for the first position, and no target for the second one. If the first position hits the target, move the second’s position stop loss to breakeven and hold it (TLDR : Hold a sell as long as background is red)
In case of a long position, hold the second position as long as the candlesticks form between the BB1 and BB2 upper bands, or above the Bollinger Middle Band. Close the second position when candlesticks start crossing the BB1 upper bands, or when one of the candlesticks breaks below the Bollinger Middle Band . (TLDR : Holda buy as long as background is green)
(Poshtrader) Bollinger Band SqueezeThe Bollinger Band Squeeze is a trading strategy designed to find consolidations with decreasing volatility. In its simplest form, this strategy is neutral and the ensuing break can be up or down. Traders, therefore, must employ other aspects of technical analysis to formulate a trading bias to act before the break or confirm the break. Acting before the break will improve the risk-reward ratio.
custom Bollinger bands with filters - indicator (AS)-----------Description-------------
This indicator is basically Bollinger bands with many ways to customize. It uses highest and lowest values of upper and lower band for exits. I think something is wrong with the script but cant find any mistakes – most probably smoothing. The ATR filter is implemented but is working incorrectly. In code you can also turn it into strategy but I do not recommend it for now as it is not ready yet.
So this is my first script and I am looking for any advice, ideas to improve this script, sets of parameters, markets to apply, logical mistakes in code or any ideas that you may have. Indicator was initially designed for EURUSD 5MIN but I would be interested in other ideas.
-----------SETTINGS--------------
---START - In starting settings we can choose
Line 1: what parts to use BB/DC/ATR
Line 2: what parts to plot on chart
Line 3 Whether or not apply smoothing to BB or ATR filter
Line 4 Calculate deviation for BB from price or Moving average
Line 5 Fill colors and plot other parts for debug (overlay=false)
Line 6:( for strategy) – enable Long/Short Trades
---BB and DC – here we modify Bollinger bands and Donchian
Line 1: Length and type of BB middle line and also length of DC from BB
Line 2: Length and type of BB standard deviation and multiplier
Line 3: Length and type of BB smoothing and %width for BB filter
---ATR filter – (not ready fully yet)
Line 1: type and length of ATR
Line 2: threshold and smoothing value of ATR
---DATE and SESSION
Line 1: apply custom date or session?
Line 2: session hours settings
Line 3:Custom starting date
Line 4: Custom Ending date
-----------HOW TO USE--------------
We open Long if BB width is bigger than threshold and close when upper band is no longer highest in the period set. Exact opposite with Short
Bollinger Bands %B (ValueRay)One of the key features of this BB%B is its ability to highlight overbought and oversold conditions. This allows you to make informed decisions on when to enter and exit a trade, helping you maximize your profits and minimize your losses.
- Bollinger Bands %B with the ability to change to a different Time Frame.(Defaults to current Chart Time Frame).
- Ability To Turn On/Off Background Highlighting if BB %B is Above/Below 0 / 1 thresholds.
- Ability To Turn On/Off Background Highlighting when BB %B Crosses back above/unser 0/1 thresholds.
---
My personal recommandation use: combine with CM_Ultimate RSI Multi Time Frame (ChrisMoody) and have solid oversold/overbought levels, when hes RSI and my BB %B are bot red/green
Bollinger Band Width Percentile - Multi Time FrameMy plan with this indicator was when trading at short timeframes, to modify my expectations on the potential impact of short term volatility based on volatility in longer timeframes, and when trading on longer timeframes to attempt to find an optimal entry point based on shorter term volatility.
The BBWP is calculated for a short, medium and long timeframe, alerts are triggered at extremities with the ability to filter by moving averages and chart movement. The alerts also trigger a plot to the "Backtest Signal" which can be used to trigger trades in a backtester.
Please see the discussions of how I'm using this indicator in the comments below.
Thanks to The_Caretaker for "Bollinger Band Width Percentile" upon which this multi time frame version is based.
+ %UMAIf you are familiar with the %B for use with Bollinger Bands, then you will understand this indicator immediately.
Designed for use with my +UMA moving average, this works in exactly the same way, with a few differences.
First off, as you can choose on which type of moving average the calculations are made, so too you will want to match this up with the one you are using. That of course goes for the standard deviation as well (just like you would with Bollinger Bands and %B). Here, because the +UMA uses highs and lows to create a sort of moving average channel, and then also to create the bands, I've opted to set the inner part of the bands as the extreme edge that the %UMA equates with the upper and lower lines.
I've added a moving average, donchian channels, and auto-plotted divergences as well, if you like. Typical color related stuff that I do. Alerts for everything.
Hope you like it!
The above image is comparing two of the same indicator, but based on different moving averages, and how it might plot divergences differently between the two.
Bricklayer's Volatility MeterBricklayer's Volatility Meter will calculate Bollinger Bands Width up to 20 different lengths between lowest and highest input.
• If it is increasing, the brick will be green.
• If it is decreasing, the brick will be red.
The idea is that if volatility is decreasing across an increasing number of periods, the market will be ready for different strategies than when it is increasing.
Good luck trading!
Risk Reduction Ultimate TemplateThis is a template not actually meant for trading. I picked two random oscillators. This is a template meant to turn into a live trading strategy, however.
It's literally just a specialized take profit/stop loss system. It is to ensure your bot doesn't make any bad moves that you wouldn't have manually. The code should be pretty well annotated. Putting this into my scripts has made them much better. I will work on a Multiple Trigger template next.
+ BB %B: MA selection, bar coloring, multi-timeframe, and alerts+ %B is, at its simplest, the classic Bollinger Bands %B indicator with a few added bells and whistles.
However, the right combination of bells and whistles will often improve and make a more adaptable indicator.
Classically, Bollinger Bands %B is an indicator that measures volatility, and the momentum and strength of a trend, and/or price movements.
It shows "overbought" and "oversold" spots on a chart, and is also useful for identifying divergences between price and trend (similar to RSI).
With + %B I've added the options to select one or two moving averages, candle coloring, and a host of others.
Let's start with the moving averages:
There are options for two: one faster and one slower. Or combine them how you will, or omit one or both of them entirely.
Here you will find options for SMA, EMA (as well as double and triple), Hull MA, Jurik MA, Least Squares MA, Triangular MA, Volatility Adjusted MA, and Weighted MA.
A moving average essentially helps to define trend by smoothing the noise of movements of the underlying asset, or, in this case, the output of the indicator.
All of these MAs available track this in a different way, and it's up to the trader to figure out which makes most sense to him/her.
MA's, in my opinion, improve the basic %B by providing a clearer picture of what the indicator is actually "seeing", and may be useful for providing entries and exits.
Next up is candle coloring:
I've added the option for this indicator to color candles on the chart based on where the %B is in relation to its upper and lower bounds, and median line.
If the %B is above the median but below the upper bound, candles will be green (showing bullish market structure). If %B is below the median but above the lower bound, candles will be red (denoting bearish market structure).
Overbought and oversold candles will also be colored on the chart, so that a quick glance will tell you whether price action is bullish/bearish or "oversold"/"overbought".
I've also added functionality that enables candles to be colored based on if the %B has crossed up or crossed down the primary moving average.
One example as a way to potentially use these features is if the candles are showing oversold coloration followed by the %B crossing up your moving average coloration. You might consider a long there (or exit a short position if you are short).
And the last couple of tweaks:
You may set the timeframe to whatever you wish, so maybe you're trading on the hourly, but you want to know where the %B is on the 4h chart. You can do that.
The background fill for the indicator is split into bullish and bearish halves. Obviously you may turn the background off, or make it all one color as well.
I've also added alerts, so you may set alerts for "overbought" and "oversold" conditions.
You may also set alerts for %B crossing over or under the primary moving average, or for crossing the median line.
All of these things may be turned on and off. You can pretty much customize this to your heart's delight. I see no reason why anyone would use the standard %B after playing with this.
I am no coder. I had this idea in my head, though, and I made it happen through referencing another indicator I was familiar with, and watching tutorials on YouTube.
Credits:
Firstly, thanks to www.tradingview.com for his brilliant, free tutorials on YouTube.
Secondly, thanks to www.tradingview.com for his beautiful SSL Hybrid indicator (and his clean code) from which I obtained the MAs.
Please enjoy this indicator, and I hope that it serves you well. :)
Advanced Bollinger Bands StrategyAdvanced Bollinger Bands Strategy
Why is it an advanced Bollinger Bands Strategy?
The purpose of Bollinger Bands is to provide a relative definition of high and low prices of a market. By definition, prices are high at the upper band and low at the lower band. This definition can aid in rigorous pattern recognition and is useful in comparing price action to the action of indicators to arrive at systematic trading decisions. Adding a Moving Average filter which only allows trades if MA and Price are outside of the BB increases the probability of profitable trades with the sacrifice of a lower trade-frequency.
Inputs for Bollinger Bands
-> BB Source
-> BB Length
-> BB Multiplier
-> Moving Average Period
-> Moving Average Source
-> Strategy Condition Options:
-> Exit Trades if Price crosses Basis Line
-> Enable Moving Average Filter
Bollinger Bands SqueezeEnglish:
Simple histogram, showing Squeeze of Bollinger Bands.
Usage is simple - when price is in Squeeze, no entries in any direction. For using with Bollinger Bands indicator, including binary options.
Russian
Простой индикатор, наглядной отображающий стадию Сжатия лент Боллинджера.
Простой в использовании - когда цена в Сжатии - не входим в сделку. Особенно эффективен при связке с индикатором лент Боллинджера и входе в сделку при раскрытии лент. Также применим для бинарных опционов
Example/Пример
Chauvenet RadiusThe Chauvenet criterion is a well-known criterion of selection and rejection of the data used by the Physics. It establishes that in an experiment is well to discard the data whose distance from the average is greater than a certain number of the delta.
In the stock market if prices move away from the average with a volatility too high are suspect. This principle is embodied in the Chauvenet floor with the definition of two asymptotes and two data areas rejection.
The Chauvenet Radius is the quadratic sum of the delta (distance from average) and sigmoid (volatility) and is therefore an obvious market stability index. In fact the moments when price strongly moves away from the average with high volatility coincide with the moments of high instability of the market.
It can be considered an evolution of John Bollinger method introduced during the '80.
Source: www.performancetrading.it
02 SMC + BB Breakout (Improved)This strategy combines Smart Money Concepts (SMC) with Bollinger Band breakouts to identify potential trading opportunities. SMC focuses on identifying key price levels and market structure shifts, while Bollinger Bands help pinpoint overbought/oversold conditions and potential breakout points. The strategy also incorporates higher timeframe trend confirmation to filter out trades that go against the prevailing trend.
Key Components:
Bollinger Bands:
Calculated using a Simple Moving Average (SMA) of the closing price and a standard deviation multiplier.
The strategy uses the upper and lower bands to identify potential breakout points.
The SMA (basis) acts as a centerline and potential support/resistance level.
The fill between the upper and lower bands can be toggled by the user.
Higher Timeframe Trend Confirmation:
The strategy allows for optional confirmation of the current trend using a higher timeframe (e.g., daily).
It calculates the SMA of the higher timeframe's closing prices.
A bullish trend is confirmed if the higher timeframe's closing price is above its SMA.
This helps filter out trades that go against the prevailing long-term trend.
Smart Money Concepts (SMC):
Order Blocks:
Simplified as recent price clusters, identified by the highest high and lowest low over a specified lookback period.
These levels are considered potential areas of support or resistance.
Liquidity Zones (Swing Highs/Lows):
Identified by recent swing highs and lows, indicating areas where liquidity may be present.
The Swing highs and lows are calculated based on user defined lookback periods.
Market Structure Shift (MSS):
Identifies potential changes in market structure.
A bullish MSS occurs when the closing price breaks above a previous swing high.
A bearish MSS occurs when the closing price breaks below a previous swing low.
The swing high and low values used for the MSS are calculated based on the user defined swing length.
Entry Conditions:
Long Entry:
The closing price crosses above the upper Bollinger Band.
If higher timeframe confirmation is enabled, the higher timeframe trend must be bullish.
A bullish MSS must have occurred.
Short Entry:
The closing price crosses below the lower Bollinger Band.
If higher timeframe confirmation is enabled, the higher timeframe trend must be bearish.
A bearish MSS must have occurred.
Exit Conditions:
Long Exit:
The closing price crosses below the Bollinger Band basis.
Or the Closing price falls below 99% of the order block low.
Short Exit:
The closing price crosses above the Bollinger Band basis.
Or the closing price rises above 101% of the order block high.
Position Sizing:
The strategy calculates the position size based on a fixed percentage (5%) of the strategy's equity.
This helps manage risk by limiting the potential loss per trade.
Visualizations:
Bollinger Bands (upper, lower, and basis) are plotted on the chart.
SMC elements (order blocks, swing highs/lows) are plotted as lines, with user-adjustable visibility.
Entry and exit signals are plotted as shapes on the chart.
The Bollinger band fill opacity is adjustable by the user.
Trading Logic:
The strategy aims to capitalize on Bollinger Band breakouts that are confirmed by SMC signals and higher timeframe trend. It looks for breakouts that align with potential market structure shifts and key price levels (order blocks, swing highs/lows). The higher timeframe filter helps avoid trades that go against the overall trend.
In essence, the strategy attempts to identify high-probability breakout trades by combining momentum (Bollinger Bands) with structural analysis (SMC) and trend confirmation.
Key User-Adjustable Parameters:
Bollinger Bands Length
Standard Deviation Multiplier
Higher Timeframe
Higher Timeframe Confirmation (on/off)
SMC Elements Visibility (on/off)
Order block lookback length.
Swing lookback length.
Bollinger band fill opacity.
This detailed description should provide a comprehensive understanding of the strategy's logic and components.
***DISCLAIMER: This strategy is for educational purposes only. It is not financial advice. Past performance is not indicative of future results. Use at your own risk. Always perform thorough backtesting and forward testing before using any strategy in live trading.***
