Please do not forget that should always be combined with another method of analysis. just provide an easy way to gauge where the price could range in. At 2 standard deviations of a continuously random variable, more than 98% of data points are in this range. I am however going to test this in excel to get the average number of data points that stay in the range for Bitcoin . I will upload my findings when I complete that. Please monitor this description if your interested.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
study("Exponential Bollinger Bands", shorttitle = "EBB", overlay = true) src = input(ohlc4, title = "source") len = input(21, title = "timeframe / # of period's") e = ema(src,len) evar = (src - e)*(src - e) evar2 = (sum(evar,len))/len std = sqrt(evar2) Multiplier = input(2, minval = 0.01, title = "# of STDEV's") upband = e + (Multiplier * std) dnband = e - (Multiplier * std) //stdd = stdev(std) //bsu = upband + std //bsun = upband - std //bsd = dnband + std //bsdn = dnband - std //plot(bsu, color = purple) //plot(bsun, color = purple) //plot(bsd, color = purple) //plot(bsdn, color = purple) plot(e, color = purple, linewidth = 2, title = "basis") plot(upband, color = red, linewidth = 2, title = "up band") plot(dnband, color = green, linewidth = 2, title = "down band")