IV Squeeze - Sunil Bhave This script calculates both Bollinger Bands and Keltner Channels on a 5-minute chart. It identifies IV squeeze conditions when the lower Bollinger Band is above the lower Keltner Channel and the upper Bollinger Band is below the upper Keltner Channel. When a squeeze is detected, it plots a red triangle below the chart bars and alerts you with a message.
Please note that this script is for educational purposes only.
Bollingersband
Robust Bollinger Bands with Trend StrengthThe "Robust Bollinger Bands with Trend Strength" indicator is a technical analysis tool designed assess price volatility, identify potential trading opportunities, and gauge trend strength. It combines several robust statistical methods and percentile-based calculations to provide valuable information about price movements with Improved Resilience to Noise while mitigating the impact of outliers and non-normality in price data.
Here's a breakdown of how this indicator works and the information it provides:
Bollinger Bands Calculation: Similar to traditional Bollinger Bands, this indicator calculates the upper and lower bands that envelop the median (centerline) of the price data. These bands represent the potential upper and lower boundaries of price movements.
Robust Statistics: Instead of using standard deviation, this indicator employs robust statistical measures to calculate the bands (spread). Specifically, it uses the Interquartile Range (IQR), which is the range between the 25th percentile (low price) and the 75th percentile (high price). Robust statistics are less affected by extreme values (outliers) and data distributions that may not be perfectly normal. This makes the bands more resistant to unusual price spikes.
Median as Centerline: The indicator utilizes the median of the chosen price source (either HLC3 or VWMA) as the central reference point for the bands. The median is less affected by outliers than the mean (average), making it a robust choice. This can help identify the center of price action, which is useful for understanding whether prices are trending or ranging.
Trend Strength Assessment: The indicator goes beyond the standard Bollinger Bands by incorporating a measure of trend strength. It uses a robust rank-based correlation coefficient to assess the relationship between the price source and the bar index (time). This correlation coefficient, calculated over a specified length, helps determine whether a trend is strong, positive (uptrend), negative (down trend), or non-existent and weak. When the rank-based correlation coefficient shifts it indicates exhaustion of a prevailing trend. Trend Strength" indicator is designed to provide statistically valid information about trend strength while minimizing the impact of outliers and data distribution characteristics. The parameter choices, including a length of 14 and a correlation threshold of +/-0.7, considered to offer meaningful insights into market conditions and statistical validity (p-value ,0.05 statistically significant). The use of rank-based correlation is a robust alternative to traditional Pearson correlation, especially in the context of financial markets.
Trend Fill: Based on the robust rank-based correlation coefficient, the indicator fills the area between the upper and lower Bollinger Bands with different colors to visually represent the trend strength. For example, it may use green for an uptrend, red for a down trend, and a neutral color for a weak or ranging market. This visual representation can help traders quickly identify potential trend opportunities. In addition the middle line also informs about the overall trend direction of the median.
Rectified BB% for option tradingThis indicator shows the bollinger bands against the price all expressed in percentage of the mean BB value. With one sight you can see the amplitude of BB and the variation of the price, evaluate a reenter of the price in the BB.
The relative price is visualized as a candle with open/high/low/close value exspressed as percentage deviation from the BB mean
The indicator include a modified RSI, remapped from 0/100 to -100/100.
You can choose the BB parameters (length, standard deviation multiplier) and the RSI parameter (length, overbougth threshold, ovrsold threshold)
You can exclude/include the candles and the RSI line.
The indicator can be used to sell options when the volatility is high (the bollinger band is wide) and the price is reentering inside the bands.
If the price is forming a supply or demand area it can be a good opportunity to sell a bull put or a bear call
The RSI can be used as confirm of the supply/demand formation
If the bollinger band is narrow and the RSI is overbought/oversold it indicate a better opportunity to buy options
the indicator is designed to work with daily timeframe and default parameters.
Bollinger Band Percentile SuiteThe Bollinger Band Percentile Suite (𝐵𝐵𝒫𝒸𝓉 𝒮𝓊𝒾𝓉𝑒) is a comprehensive and customizable toolkit built upon the foundation of the %B indicator. The methodology behind this toolkit remains consistent with the original %B indicator, while introducing a host of powerful features to enhance its functionality and adaptability.
Key Features and Customization:
The 𝐵𝐵𝒫𝒸𝓉 offers a wide array of customizable options to suit your trading preferences and strategies. It includes a variety of 14 moving average types that can be chosen as the basis for the Bollinger Band calculation. Additionally, traders have the flexibility to set their upper and lower boundaries for mean reversion detection, allowing for analysis tailored to the user's preference.
Deviation Calculation:
The toolkit provides an option to choose between standard and weighted deviation calculation methods. This added customization ensures that the indicator's behavior aligns with your unique trading style and preferences.
Signals and Reversals:
The 𝐵𝐵𝒫𝒸𝓉 excels in identifying potential overbought and oversold market conditions. It highlights these levels on the chart and marks potential reversal signals with small circles positioned either at the top or bottom of the indicator pane, providing traders with actionable insights.
Trend and Color Coding:
Incorporating a color-coded approach, the BBpct Suite enhances your understanding of market dynamics. It offers bar coloring options based on trend, allowing traders to identify bullish or bearish market conditions as the percentile goes above or below the midline.
Extremities and Reversions:
Recognizing extreme market conditions is crucial for traders. The 𝐵𝐵𝒫𝒸𝓉 includes color-coded indicators for extremities, indicating when the percentile ventures above or below the predefined thresholds. Moreover, it promptly identifies reversions by marking the moment the percentile crosses under the upper threshold (overbought) or over the lower threshold (oversold).
The Bollinger Band Percentile Suite equips traders with a versatile toolkit to gain valuable insights into market overbought and oversold conditions, and potential reversal signals. Its extensive customization options and array of features empower traders to make well-informed decisions based on their unique trading strategies and risk tolerance.
Please note that while the BBpct Suite provides robust analysis, it is advisable to combine its insights with other technical indicators and tools for a comprehensive trading approach.
Example Chart:
Auto-Length Adaptive ChannelsIntroduction
The key innovation of the ALAC is the implementation of dynamic length identification, which allows the indicator to adjust to the "market beat" or dominant cycle in real-time.
The Auto-Length Adaptive Channels (ALAC) is a flexible technical analysis tool that combines the benefits of five different approaches to market band and price deviation calculations.
Traders often tend to overthink of what length their indicators should use, and this is the main idea behind this script. It automatically calculates length based on pivot points, averaging the distance that is in between of current market highs and lows.
This approach is very helpful to identify market deviations, because deviations are always calculated and compared to previous market behavior.
How it works
The indicator uses a Detrended Rhythm Oscillator (DRO) to identify the dominant cycle in the market. This length information is then used to calculate different market bands and price deviations. The ALAC combines five different methodologies to compute these bands:
1 - Bollinger Bands
2 - Keltner Channels
3 - Envelope
4 - Average True Range Channels
5 - Donchian Channels
By averaging these calculations, the ALAC produces an overall market band that generalizes the approaches of these five methods into a single, adaptive channel.
How to Use
When the price is at the upper band, this might suggest that the asset is overbought and may be due for a price correction. Conversely, when the price is at the lower band, the asset may be oversold and due for a price increase.
The space between the bands represents the market's volatility. Wider bands indicate higher volatility, while narrower bands suggest lower volatility.
Indicator Settings
The settings of the ALAC allow for customization to suit different trading strategies:
Use Autolength?: This allows the indicator to automatically adjust the length of the dominant cycle.
Usual Length: If "Use Autolength?" is disabled, this setting allows the user to manually specify the length of the cycle.
Moving Average Type: This selects the type of moving average to be used in the calculations. Options include SMA, EMA, ALMA, DEMA, JMA, KAMA, SMMA, TMA, TSF, VMA, VAMA, VWMA, WMA, and ZLEMA.
Channel Multiplier: This adjusts the distance between the bands.
Channel Multiplier Step: This changes the step size of the channel multiplier. Each next market band will be multiplied by a previous one. You can potentially use values below 1, which will plot bands inside the first, main channel.
Use DPO instead of source data?: This setting uses the DPO for calculations instead of the source data. Basically, this is how you can add or eliminate trend from calculation of an average leg-up / leg-down move.
Fast: This adjusts the fast length of the DPO.
Slow: This adjusts the slow length of the DPO.
Zig-zag Period: This adjusts the period of the zig-zag pattern used in the DPO.
(!) For more information about DPO visit official TradingView description here: link
Also, I want to say thanks to @StockMarketCycles for initial idea of Detrended Rhythm Oscillator (DRO) that I use in this script.
The Adaptive Average Channel is a powerful and versatile indicator that combines the strengths of multiple technical analysis methods.
In summary, with the ALAC, you can:
1 - Dynamically adapt to any asset and price action with automatic calculation of dominant cycle lengths.
2 - Identify potential overbought and oversold conditions with the adaptive market bands.
3 - Customize your analysis with various settings, including moving average type and channel multiplier.
4 - Enhance your trading strategy by using the indicator in conjunction with other forms of analysis.
VCC SmtmWorks better for Cryptos (1W and greater than) timeframes.
This strategy incorporates multiple indicators to make informed trading signals. It leverages the Stochastic indicator to assess price momentum, utilizes the Bollinger Band to identify potential oversold and overbought conditions, and closely monitors Moving Averages to gauge the trend's bullish or bearish nature.
A long signal will be displayed if the following conditions are met:
The Stochastic D and Stochastic K both indicate an oversold condition, with Stochastic K being lower than Stochastic D.
The current Price Low is below the Bollinger Lower Band.
The Price Close is currently below all Moving Averages.
A Death Cross pattern has formed among the Moving Averages.
A short signal will be displayed if the opposite of the long conditions are true:
The Stochastic D and Stochastic K both indicate an overbought condition, with Stochastic K being higher than Stochastic D.
The current Price High is above the Bollinger Upper Band.
The Price Close is currently above all Moving Averages.
A Golden Cross pattern has formed among the Moving Averages.
VOLD Ratio (Volume Difference Ratio) by TenozenAnother helpful indicator is here! VOLD Ratio is calculated by the net volume of a buying candle, divided by the net volume of a sell candle.
Formula:
buying net volume/selling net volume
It's a simple indicator, but don't underestimate this simplicity. It's a powerful indicator that would help you to decide whether the volume is getting interested in the direction that the market would take. So assume when the market is above the Bollinger Bands, it means that the volume is at a buying extreme, by that, we could expect the market to get back towards the mean, as there is a lot of buying demand that entered the market. How about below the Bollinger Bands? it means that the volume is at a selling extreme, we could expect that there is a lot of volume getting in toward the sellers, so we could take advantage of the opportunity to go for a long. Lastly, the Bollinger Bands would help you guys to determine the liquidity of the market, if the Bollinger Bands get smaller over time, it means there is no interest for the market to enter yet, and if the Bollinger Bands get bigger over time, it means there is interest for the market to enter in the session.
Tips & Reminder:
- We shouldn't use this indicator by itself, make sure to use an Indicator that would help you guys to determine the momentum and the liquidity of the market.
- The higher the timeframe, the slower this indicator would signal an entry, by that use a smaller timeframe... I suggest using a 15M chart for the execution.
- Always trade in the medium-longterm direction if you want to have a high probability trade.
- Be patient in your execution, it's more likely the market would go higher or lower after going in the extreme of the Bollinger Bands.
Well, that's it! Hope you guys enjoy using this indicator, let me know if there is any question or suggestion. Ciao...
Bollinger Bands Lab - by InFinitoVariation of the Moving Average Lab that includes Bollinger Bands functionality for any manually created Moving Average. It includes:
- Standard Deviations for any MA
- Fixed Symmetrical Deviations for any MA that remain at a constant % away from the MA
- The same Moving Average creation settings from the Moving Average Lab
"The Moving Average Lab allows to create any possible combination of up to 3 given MAs. It is meant to help you find the perfect MA that fits your style, strategy and market type.
This script allows to average, weight, double and triple multiple types and lengths of Moving Averages
Currently supported MA types are:
SMA
EMA
VWMA
WMA
SMMA (RMA)
HMA
LSMA
DEMA
TEMA
Features:
- Double or Triple any type of Moving Average using the same logic used for calculating DEMAs and TEMAs
- Average 2 or 3 different types and lengths of Moving Average
- Weight each MA manually
- Average up to 3 personalized MAs
- Average different Moving Averages with different length each "
The preview screenshot shows:
- The combination of:
- 200 LSMA - Weight: 1
- 200 HMA - Weight: 2
- 200 VWMA - Weight: 1 - Double
- The regular Bollinger Band setting, 2 standard deviations
- Two fixed symmetrical deviations at 15% and 20% away from the XMA
Moving Averages + BB & R.VWAP StDev (multi-tf)█ Moving Averages + Bollinger Bands and Rolling Volume Weighted Average Price with Standard Deviation Bands (Multi Timeframe)
Multiple moving averages can be independently applied.
The length , type and timeframe of each moving average are configurable .
The lines and colors are customizable too.
This script can display:
Moving Averages
Bollinger Bands
Rolling VWAP and Standard Deviation Bands
Types of Moving Averages:
Simple Moving Average (SMA)
Exponential Moving Average (EMA)
Smoothed Moving Average (SMMA)
Weighted Moving Average (WMA)
Volume Weighted Moving Average (VWMA)
Least Squares Moving Average (LSMA)
Hull Moving Average (HMA)
Arnaud Legoux Moving Average (ALMA)
█ Moving Average
Moving Averages are price based, lagging (or reactive) indicators that display 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.
█ Bollinger Bands
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, a 20 day moving average is by far the most popular).
The SMA then serves as a base for the Upper and Lower Bands which are used as a way to measure volatility by observing the relationship between the Bands and price.
█ Rolling VWAP
The typical VWAP is designed to be used on intraday charts, as it resets at the beginning of the day.
Such VWAPs cannot be used on daily, weekly or monthly charts. Instead, this rolling VWAP uses a time period that automatically adjusts to the chart's timeframe.
You can thus use the rolling VWAP on any chart that includes volume information in its data feed.
Because the rolling VWAP uses a moving window, it does not exhibit the jumpiness of VWAP plots that reset.
Based on the previous script :
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
Momentum Channel - [Volume Filter]The indicator incorporates a volume filter to ensure that the RSI only moves when the volume is above the moving average of the volume.
The filtered RSI is then used to calculate the Bollinger Bands and moving averages, providing insights into the market dynamics.
It also gives you insight into the bigger timeframes so you can monitor momentum!
Volume Filter Length: Input parameter for the length of the volume filter moving average.
Overview of code:
rsiPeriod: Input parameter for the RSI period.
bandLength: Input parameter for the length of the Bollinger Bands.
lengthrsipl: Input parameter for the length of the fast moving average (MA) on the RSI.
volumeFilterLength: Input parameter for the length of the volume filter moving average.
volumeAvg: Calculates the moving average of the volume using the ta.sma() function with the specified volume filter length.
filteredRsi: Uses the ta.valuewhen() function to obtain the RSI value only when the volume is greater than or equal to the volume moving average. This creates a filtered RSI based on the volume filter.
offs: Calculates the offset value for the Bollinger Bands. It is derived by multiplying 1.6185 with the standard deviation of the filtered RSI using the ta.stdev() function.
LNL Simple Hedging ToolLNL Simple Hedging Tool
Simple Hedging Tool was created specifically for swing traders who struggle with hedging. This tool helps to spot the ideal moments to put the hedges on (protection of the portfolio during "high risk" times). Simple Hedging Tool will not help you when day trading. It was designed for the daily charts. It is called simple because it is pretty much self-explanatory indicator. The candles are either blue or yellow. Meaning of the colors depend on the version you are using. This tool consist of two versions:
SPX Version:
This version was designed for indexes & overall market benchmarks. In contrast with the VIX version, the SPX version is little more sophisticated since it is based on key market internals. Blue arrows above the candles? More often than not this is signalizing that the key market internals are now approaching bearish signals which means it is the best time to hedge any bullish positions. On the contrary, the yellow arrows are the good reason to lighten up of the shorts & ease off the gas pedal on any bearish outlooks.
VIX Version:
Apart from the black swan events (big market crashes) Vix usually oscillates between the daily extremes. The VIX version is based on a simple bollinger band technique which is visualized with blue & yellow arrows. Whenever the yellow arrows & candles appear, it is good time to put the hedges on & perhaps lighten up on longs.
IMPORTANT DISCLAIMER:
The signals from this tool WILL NOT TELL YOU where to buy or sell! But rather when is a good time TO NOT buy or TO NOT sell. Once the signals appear it does not necessarily mean that the move is over & reversion willl happen immidiately. These signals can be flashing for days even weeks. They are not flashing for you to change the bias but rather tighten up your exposure in case your portfolio is mostly one sided.
Hope it helps.
VWAP Bollinger Band Crossover Breakout with ResistanceCredit to © Jesus_Salvatierra for VWAP script
This script help you find a trend in momentum stock that is about to breakout and shows resistance point. This script utilizes Bollinger bands VWAP and is good for intra day charts.
VWAP, or Volume Weighted Average Price, is a technical analysis tool used to measure the average price a security trades at during a given time period, weighted by the trading volume for each price level. It is commonly used by traders and investors to identify the true average price of a security and to assess whether they are buying or selling at a fair price.
A Bollinger Band is a technical analysis tool that uses standard deviation to measure the volatility of a security. The Bollinger Band is typically composed of three lines: the upper band, the lower band, and the middle band. The middle band is a simple moving average of the security's price, while the upper and lower bands are calculated based on the standard deviation of the security's price.
A Bollinger Band crossover occurs when the price of a security crosses above or below one of the bands. When the price crosses above the upper band, it is considered overbought, while when it crosses below the lower band, it is considered oversold. Traders often use Bollinger Band crossovers as a signal to enter or exit a position, depending on their trading strategy.
The VWAP and Bollinger Band crossover are two separate technical analysis tools that can be used in conjunction with each other. When a security's price crosses above or below the Bollinger Band, traders may look to the VWAP to confirm whether the security is trading at a fair price. If the security is trading above the VWAP, it may be overvalued, while if it is trading below the VWAP, it may be undervalued. Similarly, traders may use the Bollinger Band crossover as a signal to enter or exit a position, while also taking into account the VWAP to assess whether the price is fair.
Bollinger Bands Weighted Alert System (BBWAS)The idea of this indicator is very similar to my previous published script called BBAS (Bollinger Bands Alert System).
Just with little additions. In this case, we're using a Weighted Moving Average (ta.wma) instead of Simple Moving Average to calculate the basis line.
A breakout in trading refers to a situation where the price of a security or asset moves beyond a defined level of support or resistance, which is typically indicated by technical analysis tools like Bollinger Bands. Bollinger Bands consist of three lines: the upper band, the lower band, and the middle band (or basis). The upper and lower bands are set at a specified number of standard deviations away from the middle band, and they help to define the range within which the price of an asset is expected to fluctuate.
When the price of the asset moves beyond the upper or lower band, it is said to have "broken out" of the range. If the price closes below the lower band, it is considered a bearish breakout, and if it closes above the upper band, it is considered a bullish breakout.
Once a breakout occurs, traders may look for a confirmation signal before entering a trade. In this case, crossing the middle line (or basis) after a breakout may signal a potential trend reversal and a good opportunity to enter a long or short trade, depending on the direction of the breakout.
Dear traders, while we strive to provide you with the best trading tools and resources, we want to remind you to exercise caution and diligence in your investing decisions.
It is important to always do your own research and analysis before making any trades. Remember, the responsibility for your investments ultimately lies with you.
Happy trading!
Fibonacci Volatility BandsFibonacci Volatility Bands are just an alternative that allows for more margin than regular Bollinger Bands. They are created based on an average of moving averages that use the Fibonacci sequence as lookback periods.
The use of the Fibonacci Volatility Bands is exactly the same as the Bollinger Bands.
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.
AII - Average indicator of indicatorsThis Pine Script for TradingView is a technical analysis tool that visualizes the average of several popular indicators in the trading world. The indicators included are the RSI (Relative Strength Index), RVI (Relative Vigor Index), Stochastic RSI, Williams %R, relative MACD (ranging from 0 to 100), and Bollinger Bands price distance from 0 to 100. The script uses the "input" function to customize the length of the indicators and the "plot" function to display the results on the chart. In addition, options are included to turn off certain indicators and change the line colors if the user desires. All indicators can also be activated independently, allowing the user to see only the indicators they want. It is also mentioned that the script will be improved in the future to offer a better user experience. The calculated values are calculated with the default EMA of 14. Overall, this script is an excellent option for those looking for a combined view of several important indicators for making trading decisions.
Dual Bollinger Band Mean ReversionSimple but solid mean reversion indicator with sl and tp levels. Most of the code is based on the built in bollinger bands script. Designed for scalping 1-5 minute timeframes.
The indicator consists of two sets of bollinger bands.
Price has to close below the lower (fast) bollinger band, above the moving average of the (slower) bollinger band.
If price now closes above the lower (fast) bb, the indicator draws a label at the open of the next candle (which would be a potential entry point). Take profit becomes the upper bollinger band, stop loss the same distance below the open of the candle.
I've built in a simple backtesting function that calculates the potential win/loss-ratio. Loss and profit levels are 1:1. Exit strategy could be improved on.
Adjusting the lengths depending on the asset proves to be a good idea.
The slower bollinger bands can help to identify ranging markets and/or trends following regular bollinger bands theory.
Feel free to comment with any changes that you'd like to be made.
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.
Generalized Bollinger Bands %B And Bandwidth (Tartigradia)Bollinger Band is simply a representation of the rolling average of price and its standard deviation around the average (called the "basis").
This indicator generalizes the Bollinger Band by implementing many different equations to calculate the Bollinger Bands beyond the standard deviation and sma, and then plot the %B (where the current price falls inside the Bollinger Band), Bandwidth (size of the Bollinger Band) as well as the Bollinger Band itself and a reproduction of the OHLC price candles in a separate pane.
Whereas other Bollinger Bands indicators often just change the basis but not the stdev calculation, the correct way to change the basis is to also change it inside the stdev calculation.
Advanced features such as temporal discounting (ie, newer bars can have more weights), median absolute deviation and multiple sigma bands (eg, 3-sigma) are available.
Up to 3 different Bollinger Bands can be displayed, and the background can be highlighted when price is overbought/oversold (beyond the Bollinger Band of choice). Tip: BB3, which is the bollinger band with standard deviation of 3, which represents 99% of observed values in the lookback period, is a good choice to highlight overbought/oversold conditions.
Three "Sentiment Bars" are provided to see at a glance the sentiments on the price action relative to the Bollinger Bands as reflected by the %B value.
Usage:
Use the %B as a measure of sentiment: bullish if > 0.5, bearish if < 0.5. You can use the Sentiment Bars at the bottom for a quick reference: aqua if bullish, red if bearish, gray if undefined (too close to the middle line).
Use the bandwidth as a measure of volatility: higher is more volatile, lower is less.
When overbought, it can be a good time to sell/short. Use a higher Bollinger Band Multiplier such as 3 or more to reduce false positives.
When oversold, it can be a good time to buy/long. Use a higher Bollinger Band Multiplier such as 3 or more to reduce false positives.
Consider setting a much tighter lookback period of 4 as recommended in backtested works (en.wikipedia.org), use zlma instead of sma, and finally set a higher timeframe for the Bollinger Bands than the one you are currently studying. Then, the Bollinger Bands can help in detecting overbought and oversold regions (price going "out of bands").
Note that I tried to automate the setting of a higher timeframe, but for some reason the output is different when I manually do it using request.security() than when it's in indicator(timeframe=""). If someone has any suggestion as to why it happens, please let me know! (You can try it for yourself by uncommenting the auto_timeframe parameter line).
Generalized Bollinger Bands (Tartigradia)Bollinger Band is simply a representation of the rolling average of price and its standard deviation around the average (called the "basis").
This indicator generalizes the Bollinger Band by implementing many different equations to calculate the Bollinger Bands beyond the standard deviation and sma.
Whereas other Bollinger Bands indicators often just change the basis but not the stdev calculation, the correct way to change the basis is to also change it inside the stdev calculation.
Advanced features such as temporal discounting (ie, newer bars can have more weights), median absolute deviation and multiple sigma bands (eg, 3-sigma) are available.
Up to 3 different Bollinger Bands can be displayed, and the background can be highlighted when price is overbought/oversold (beyond the Bollinger Band of choice).
Tip: BB3, which is the bollinger band with standard deviation of 3, which represents 99% of observed values in the lookback period, is a good choice to highlight overbought/oversold conditions.
Usage:
Use it as usual Bollinger Bands, as a measure of volatility, and to setup stop losses.
Use the bandwidth as a measure of volatility: higher is more volatile, lower is less.
When overbought, it can be a good time to sell/short. Use a higher Bollinger Band Multiplier such as 3 or more to reduce false positives.
When oversold, it can be a good time to buy/long. Use a higher Bollinger Band Multiplier such as 3 or more to reduce false positives.
Consider setting a much tighter lookback period of 4 as recommended in backtested works (en.wikipedia.org), use zlma instead of sma, and finally set a higher timeframe for the Bollinger Bands than the one you are currently studying. Then, the Bollinger Bands can help in detecting overbought and oversold regions (price going "out of bands").
Note that I tried to automate the setting of a higher timeframe, but for some reason the output is different when I manually do it using request.security() than when it's in indicator(timeframe=""). If someone has any suggestion as to why it happens, please let me know! (You can try it for yourself by uncommenting the auto_timeframe parameter line).
If you want to plot the indicator in a separate pane, and to also plot %B and bandwidth, I made another indicator "Generalized Bollinger Bands %B and Bandwidth by Tartigradia" that does that.
RSI & BB QQE Mod (highlight)This script is a combination of the RSI, QQE and BB
Here is an explanation on how I combined them, and how they are used:
- RSI (Relative Strength Index)
- Display a smoothed version of the RSI to identify "oversold" and "overbought" market phases
- Used to calculate a QQE
- QQE (Quantitative Qualitative Estimation)
- Used to identify trend direction and trend strength
- Used to set a basis for the BB
- BB (Bollinger Bands)
- Used with QQE as a basis to determine a relative definition of "high RSI" and "low RSI"
- Used with QQE as a basis to determine the volatility of the RSI at a given moment
- Used to predict pivot points
Here are the main signals:
- When "RSI Smoothed" line above the Upper BB then "RSI Smoothed" line turns green
- Also , display green background color highlight
- Also , and if "RSI Smoothed" is above the overbought line then display a second green background color highlight
- When "RSI Smoothed" line bellow the Lower BB then "RSI Smoothed" line turns red
- Also , display red background color highlight
- Also , and if "RSI Smoothed" is bellow the oversold line then display a second red background color highlight
A tool codded to be aesthetically pleasing and VERY customisable:
- Designed for both light theme and dark theme users
- Value can be easily modified in the settings
- Colors can be easily swapped in the settings
- Opacity of "fill" & "bgcolor" regrouped as a single input
A tool codded to be easy to read and to learn from:
- Sources and inspirations all listed within the script
- Structure easily identifiable (to understand with little to no effort how the script works)
Notes :
- This script is lagging, because of that I do recommend using it on relatively large timeframe
- This script is OpenSource, feel free to reuse it, but if so please remember to include a link to my script in your sources
- This script is not a magical tool, use at your own risk
LibIndicadoresUteisLibrary "LibIndicadoresUteis"
Collection of useful indicators. This collection does not do any type of plotting on the graph, as the methods implemented can and should be used to get the return of mathematical formulas, in a way that speeds up the development of new scripts. The current version contains methods for stochastic return, slow stochastic, IFR, leverage calculation for B3 futures market, leverage calculation for B3 stock market, bollinger bands and the range of change.
estocastico(PeriodoEstocastico)
Returns the value of stochastic
Parameters:
PeriodoEstocastico : Period for calculation basis
Returns: Float with the stochastic value of the period
estocasticoLento(PeriodoEstocastico, PeriodoMedia)
Returns the value of slow stochastic
Parameters:
PeriodoEstocastico : Stochastic period for calculation basis
PeriodoMedia : Average period for calculation basis
Returns: Float with the value of the slow stochastic of the period
ifrInvenenado(PeriodoIFR, OrigemIFR)
Returns the value of the RSI/IFR Poisoned of Guima
Parameters:
PeriodoIFR : RSI/IFR period for calculation basis
OrigemIFR : Source of RSI/IFR for calculation basis
Returns: Float with the RSI/IFR value for the period
calculoAlavancagemFuturos(margem, alavancagemMaxima)
Returns the number of contracts to work based on margin
Parameters:
margem : Margin for contract unit
alavancagemMaxima : Maximum number of contracts to work
Returns: Integer with the number of contracts suggested for trading
calculoAlavancagemAcoes(alavancagemMaxima)
Returns the number of batches to work based on the margin
Parameters:
alavancagemMaxima : Maximum number of batches to work
Returns: Integer with the amount of lots suggested for trading
bandasBollinger(periodoBB, origemBB, desvioPadrao)
Returns the value of bollinger bands
Parameters:
periodoBB : Period of bollinger bands for calculation basis
origemBB : Origin of bollinger bands for calculation basis
desvioPadrao : Standard Deviation of bollinger bands for calculation basis
Returns: Two-position array with upper and lower band values respectively
theRoc(periodoROC, origemROC)
Returns the value of Rate Of Change
Parameters:
periodoROC : Period for calculation basis
origemROC : Source of calculation basis
Returns: Float with the value of Rate Of Change
