Bollinger bands with customizable expansion signals
What’s new in this indicator? This indicator allows users to customize Bollinger bands expansion signal with the conditions below.
1. Target bands Which bands should be considered as expansion when price crossing? Available options are plus/minus 1-3 σ.
2. Price Which price should be considered as bands breakout Available options are high, low and close
3. Band width increment(volatility) When band width is N times wider than previous bar. N = ? This parameter is regarded as volatility expansion, measuring how much band width gets wider than previous bar. Band width is distance between each band and middle line(SMA).
Expansion signals are displayed when 1, 2 and 3 are all met.
For example, if you select parameters as follows, expansion signals are appeared when;
Bullish expansion: When prices(highs) cross over plus 2 σ band with band width of the current candle is 1.15 times wider than previous bar.
Bearish expansion: When prices(lows) cross under minus 2 σ band with band width of the current candle is 1.15 times wider than previous bar.