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Bollinger Bands Width (BBW)

Educational: Grid Trading, What is it? How it works?Grid trading is often marketed as a way to win every trade. People usually get away with this type of marketing of the trading style due to the fact that grid trading does not care for market execution in the sense of market direction because you will close profitable trades if the market goes up or down. But it's not as simple as that. What is Grid trading? Grid trading is a type of trading strategy that makes use of market price variations by placing buy and sell orders at regular intervals around a base price. The foreign exchange market is where grid trading is most frequently employed, but it can also be used on other markets, like those for futures contracts. How to execute trades on a grid The image above explains exactly how positions that run in the upper direction are executed. Let's break down the process: (1) At the start of your grid trading system, you execute a buy and a sell position with the same lot size. (2) You will only set a take profit and a buy limit/sell limit, but no stop loss. (3) Assuming the price runs in the direction of the buy and you have a 10-pip stop loss, once the price hits your 10-pip stop loss, you will also execute a sell position via the sell limit. This sell position will have a 10-pip take profit in the opposite direction. See demonstration below: There is no restriction on the size of the grid. It does not have to be 10 pips apart. The distance of the grid is explained further in the publication. Here is a video using a trading simulator to show you how these positions would be executed : So, as you can see, with this style of trading, you can potentially make money whether the price goes up or down. However, it can be quite challenging to execute and maintain a large number of trades. Therefore, individuals typically employ automated systems or use trading software to manage and monitor these trades. Trending Market Grid trading can be used to profit from both trending and ranging markets. In a trending market, grid trading involves placing buy orders above the base price and sell orders below the base price. This way, the trader can capitalize on the price movement in a sustained direction. For example, if the base price of Bitcoin futures is $60,000, the trader can place buy orders every $1,000 above the base price. This is also sometimes wrong referred to as dollar cost averaging or compounding your trade which are very different investment strategies. Grid trading's key benefit is that it can be readily automated using trading bots and does not require a lot of forecasting of market direction. Grid trading's main disadvantage is that, if the market goes against the grid and the trader does not apply appropriate risk management strategies like stop-loss limits or position sizing, it may result in significant losses. Grid Size Choosing a grid spacing is one of the most important aspects of grid trading. This depends on a number of elements, including: - The volatility of the market: The more volatile the market is, the wider the grids should be to avoid frequent executions and commissions. - The personal preference of the trader: The trader should choose a grid size that suits their trading style and risk tolerance. Technical indicators like moving averages or Bollinger bands are sometimes used to calculate the spacing between the grids. These indicators can be used to determine the market's volatility and average price over a specific time frame. You can also use basic price action to determine what range the market is likely to tstay within and then calculate the grid in-between Ranging or Trending: Identifying whether the market is trending or range is another important aspect of grid trading. This can be used to determine whether to employ grids that move with the trend or against it. There are a number of approaches to determine if the market is trending or fluctuating, including: - Using trend lines or channels: A trend line or channel is a line that connects higher highs or lower lows in a trending market. A break of a trend line or channel can indicate a change in trend or a range-bound market. - Using trend indicators such as ADX or MACD: The average directional index (ADX) measures the strength of a trend on a scale from 0 to 100. A high ADX value (above 25) indicates a strong trend while a low ADX value (below 20) indicates a weak trend or a range-bound market. The moving average convergence divergence (MACD) measures the difference between two moving averages of different lengths. A positive MACD value indicates an uptrend while a negative MACD value indicates a downtrend. A crossover of MACD lines or zero line can indicate a change in trend or a range-bound market. Link to a publication on MACD : - Using range indicators such as RSI or Stochastic: The relative strength index (RSI) measures how overbought or oversold a market is on a scale from 0 to 100. A high RSI value (above 70) indicates an overbought market while a low RSI value (below 30) indicates an oversold market. A reversal of RSI from extreme levels can indicate a change in trend or a range-bound market. Link to related publication:
COINBASE:ETHUSDEducation
by ChristopherDownie
2
2nd Pine Script Lesson: Coding the Entry Logic - Bollinger BandWelcome back to our Trading View tutorial series! In this second lesson, be learning how to code the entry logic for a Bollinger Band indicator using Pine Script. If you're new here and missed the first lesson, we highly recommend starting there as it provides a solid foundation for understanding the concepts we'll be covering today: In this hands-on lesson, we'll guide you through every step of coding the entry logic for your own Bollinger Band indicator using Pine Script. By the end of this lesson, you'll have a functional indicator that you can use to inform your trading decisions. So, sit back, grab a cup of coffee, and let's get started! Code the entry logic a) This is where we are calling the Mikilap function with two arguments: - the coinpair and - the timeframe we want to use. // Calling the Mikilap function to start the calculation int indi_value = Function_Mikilap(symbol_full, time_frame) b) In the function initiation we convert the strings into simple strings. // Definition of a Pine Script individual function to handle the Request and avoid Repainting Errors Function_Mikilap(simple string coinpair, simple string tf_to_use) => c) As we are calling the function to get an integer value, we have to define an output variable as an integer and place this variable as the last line in the local scope of the function code to return the integer value. int function_result = 0 // placeholder for indicator calculations function_result Step 1: Using the lower bandwidth of the Bollinger Band based on SMA (close, 21) and a standard deviation of 2.0 and try to highlight bars, where close is next to the lower band a) Requesting the values for the coinpair with request.security() = request.security(coinpair, tf_to_use, ) We recommend using repainting functions like request or barstate only in a local scope (inside a function) and not to request complex calculated values. For saving calculation capacity it is useful to only request the classic four OHLCs and do any calculation with these four after the r equest.security() . b) Calculation of the lower Bollinger Bands values as we need the global info, which type of source, length, and deviation value to use for the calculation, let‘s cut & paste the input for the Bollinger Band in the general starting section of the code and as we want to look for close values „next“ to the lower bandwidth, we need to define what „next“ means; let‘s do it in another input variable, perhaps we want to play with the definition later. string symbol_full = input.symbol(defval = "BINANCE:BTCUSDT", title = "Select Pair:", group = "General") string time_frame = input.string(defval = "60", title = "Timeframe:", tooltip = "Value in minutes, so 1 hour = 60", group = "General") int length = input.int(defval = 21, title = "BB Length:", group = "Bollinger Band Setting") src = input(defval = close, title="BB Source", group = "Bollinger Band Setting") float mult = input.float(defval = 2.0, title="BB Standard-Deviation", group = "Bollinger Band Setting") float lower_dev = input.float(defval = 0.1, title="BB Lower Deviation in %", group = "Bollinger Band Setting")/100 First, let‘s make it visible on the chart by re-writing the Bollinger Bandplot, which is not needed anymore. // Calling the Mikilap function to start the calculation int indi_value = Function_Mikilap(symbol_full, time_frame) // Output on the chart // Part 2 - plotting a Band around the lower bandwidth of a Bollinger Band for the active CoinPair on the chart lower_bb = ta.sma(src, length) - (mult*ta.stdev(src, length)) lower_bb_devup = lower_bb + lower_bb * lower_dev lower_bb_devdown = lower_bb - lower_bb * lower_dev upper = plot(lower_bb_devup, "BB Dev UP", color=#faffaf) lower = plot(lower_bb_devdown, "BB Dev DOWN", color=#faffaf) fill(upper, lower, title = "BB Dev Background", color=color.rgb(245, 245, 80, 80)) c) Now we use the same calculation for the coinpair inside the function and start with the selection of the source (OHLC) to use, which is activein the respective input variable. // Defintion of a Pine Script individual function to handle the Request and avoid Repainting Errors Function_Mikilap(simple string coinpair, simple string tf_to_use) => int function_result = 0 bool barstate_info = barstate.isconfirmed = request.security(coinpair, tf_to_use, ) src_cp = switch src open => open_R high => high_R low => low_R => close_R lower_band_cp = ta.sma(src_cp,length) - (mult*ta.stdev(src_cp, length)) lower_band_cp_devup = lower_band_cp + lower_band_cp * lower_dev lower_band_cp_devdown = lower_band_cp - lower_band_cp * lower_dev // placeholder for indicator calculations d) As the bandwidth for the interesting close values is defined by our band, the only thing missing for the part of the Bollinger Band in our Mikilap indicator is to check if the close value of a bar is inside our band. As we are talking about closed bars, let‘s be sure that it is really closed by using barstate.isconfirmed (repainting built-in function!) and save it in a variable in the head of the function to avoid requesting this info too often. bool barstate_info = barstate.isconfirmed Now let‘s check if the close value of a bar is inside our band. bool bb_entry = close_R < lower_band_cp_devup and close_R > lower_band_cp_devdown and barstate_info And increase the output variable by 1 in case the close value is inside. if bb_entry function_result += 1 By using bb_entry , we are referring to the last bar next to the actual bar, because we want to enter on the opening of the bar after the criteria has been met. e) And to make these possible entries visible, we want to place a label below the bar and show the entry price (=open value of the bar) as mouseover (tooltip). This should only happen if the active coinpair on the chart is the same coinpair, which is in the calculation of the function. if function_result == 1 and ticker.standard(syminfo.tickerid) == coinpair label LE_arrow = label.new(x = bar_index, y = low_R, text = " ↑ LE", yloc = yloc.belowbar, color = color.rgb(255,255,255,25),style = label.style_none, textcolor = color.white, tooltip = str.tostring(open_R)) Note: You will love labels (!) and in case you are looking for text symbols that can be used as labels, look here: www.messletters.com If you need help use the Pine Script Reference Manual, which explains 99% of everything in Pine Script, here: www.tradingview.com f) As our function now returns different integer values (0 or 1), we can use this info to color the background on the actual chart in case it is 1. // Calling the Mikilap function to start the calculation int indi_value = Function_Mikilap(symbol_full, time_frame) color bg_color = indi_value ? color.rgb(180,180,180,75) : color.rgb(25,25,25,100) bgcolor(bg_color) g) To finish this little Pine Script lesson and to achieve our initial targets, we just need to integrate the second indicator (RSI) into the function. We want to use the RSI for 0,5 days (12 hours) and use it to ensure to not go into a long entry in an oversold (< 25) or overbought (> 70) market. We will use RSI (low, 12) within 25 to 45 as the range to go for. Your tasks: define new input variables for RSI: src_rsi and length_rsi define new input variables for the RSI range we want to use: rsi_minand rsi_max(please use the „inline“ format of an input type) calculate the RSI (src_rsi, length_rsi) inside our Mikilap-function define a boolean variable (rsi_entry) to check if the calculated RSI value is inside the range (please add as last check the barstate_info) add the RSI entry check to the Bollinger Band entry check to combine them Congratulations on finishing the second lesson on Trading View - we hope you found it informative and engaging! We're committed to providing you with valuable insights and practical knowledge throughout this tutorial series. So, we'd love to hear from you! Please leave a comment below with your suggestions on what you'd like us to focus on in the next lesson. Thanks for joining us on this learning journey, and we're excited to continue exploring Trading View with you!
Education
by Mizar_trading
8
KOSS - ready to moveKOSS daily showing bullish diversion on a number of indicators and is resting on strong historic support levels at the current price. Further the price has been drifting away from the longer term regression trend midline, suggesting a change in direction is occurring. Per the OBV buyers have generally held onto their shares since the run up that occurred last July. With the Bollinger's getting and staying tight, I expect KOSS will make a move to the upside fairly soon. Trade target is $6. Looking to add shares at ~$4.45. Stop at $4.33. NFA!
NASDAQ:KOSSLong
by Akksujean
📊Bollinger Bands In A Trending MarketBollinger Bands are a widely used chart indicator for technical analysis created by John Bollinger in the 1980s. They offer insights into price and volatility and are used in many markets, including stocks, futures, and currencies. Bollinger Bands have multiple uses, such as determining overbought and oversold levels, as a trend following tool, and for monitoring for breakouts. 📍 Strategy Bollinger Bands measure deviation and can be helpful in diagnosing trends. By generating two sets of bands using different standard deviation parameters, traders can gauge trends and define buy and sell zones. The bands adapt dynamically to price action, widening and narrowing with volatility to create an accurate trending envelope. A touch of the upper or lower band is not a signal in and of itself, and attempting to "sell the top" or "buy the bottom" can lead to losses. Standard deviation is a statistical measure of the amount of variation or dispersion of a set of prices or returns from its average value. The higher the standard deviation, the wider the Bollinger Bands, indicating greater price volatility, and vice versa. Traders may use standard deviation to set stop-loss and take-profit levels or to help determine the risk-to-reward ratio of a trade. 📍 Calculation First, calculate a simple moving average. Next, calculate the standard deviation over the same number of periods as the simple moving average. For the upper band, add the standard deviation to the moving average. For the lower band, subtract the standard deviation from the moving average. Typical values used: Short term: 10 day moving average, bands at 1.5 standard deviations. (1.5 times the standard dev. +/- the SMA) Medium term: 20 day moving average, bands at 2 standard deviations. Long term: 50 day moving average, bands at 2.5 standard deviations. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
2
The Bollinger Bands are Squeezing the Juice out of GrainsSoybean short swing trade: The Bollinger Bands width has narrowed to 2.56% of price which is a level not seen in over a year. A new 6-month or greater low in bandwidth indicates that a volatility squeeze breakout is likely upon us. Similar volatility squeeze situations exist in wheat and corn but they both broke to the downside significantly last week. Wheat was -6.42% on the week, corn -4.21%, and soybeans lagged at -0.20%. Soybean price reached the lower parabolic SAR which is a signal to short the volatility squeeze. The stop loss is positioned at the upper SAR for this trade. A stop above the 20-day SMA would be more conservative. The overarching price pattern is a rising wedge with what appears to be a fake breakdown in late January. If we hold below the 20-day SMA it will roll over in 3 days. Wheat shows a similar setup already occurred a couple weeks ago but it was a head fake to the upside. There is risk in wheat being at the recent low pivot for the 3rd time. It could moon from here like gold did after making a triple bottom. Note the gigantic head and shoulders. Wheat: Gold: Note the lack of a Bollinger Band squeeze at the pre-moon triple bottom: Corn also shows a similar setup, but there was no head fake, it just broke down out of the band squeeze. Corn: Soybean Crush spread: It appears positioned for a big move in either direction. Seems likely to bounce back up in concert with a soybean drop. It’s in volatility squeeze territory as well. Oil: The mother of all commodities has an inverse head and shoulders continuation pattern suggesting more downside: tldr; short soybeans
CBOT:ZS1!Short
by Skipper86
2
LABU - Break-out & bullish signalsLABU daily chart showing a recent break-out and successful back-test of the longer-term down trend. Optimism present due to a recent Bullish Cross on the MACD, price closing above the VWAP on Friday, price now above the 50-day MA, and buyers appear to be coming back. BBs staying tight on the daily suggesting a significant move may occur soon. Last time the BBW was this low the price move was +20%. Targeting a similar rise in price on this trade to the $8.30s or $8.40s. NFA.
AMEX:LABULong
by Akksujean
DODG - Round 2?DODG looking like it may want to squeeze up more soon. Regression trend down off the recent high showing the potential for a reversal back to the upside with fairly strong divergence off the regression channel midline. BBs have gotten tight again on the 4-hour and shorter timeframes indicating a directional change. Volume appears to be swinging back to bullish. DODG is not oversold on the daily chart. Will look for confirmation of the move and add (or not) based on direction. With lots of strong support at this price from the Feb 2021 run-up, seems like a relatively low risk entry. Maybe they are letting DODG run a bit to help provide some cover for the FTX shenanigans. NFA.
BITTREX:DOGEUSDLong
by Akksujean
2
$APE bottom in? APE CHAIN?The next NFT frontier for the apes, APE CHAIN . Could $APE launch itself to compete w/ $BNB? It all depends on how heavily invested/serious they are in building an actual metaverse to reality. Looking at the founders of the coin, how $APE is now a payment currency on open sea , and how most metaverse projects are having trouble launching, I’m afraid $APE is a buy the rumor, sell the news type of coin for now. Would recommend getting on ape now at ~$17 Long based on speculation that other people will ape their $ to fund a potential leading metaverse project. Whether or not it delivers is irrelevant to making a profit given the strong community in the NFT space. More on the technicals: $APE looks like it might bottom out here around $17 from a bull div on the 2HR and moving away from a state of mean reversion since the high of $27. The BBWP indicator has yet to confirm the end of the volatile move but I speculate it will give consolidation soon as more APEs pause redeeming land deeds as they get sold out or wait for gas fees to come down to more reasonable levels. Once we get a rally, expect resistance at ~$20 The key points of confluence for the bottom: Wave 3 PoC 0.5 fib retracement of Wave 3 1.272 fib extension of Wave C of ABC pattern on Wave 4 The token distribution looks fair, though I would remain cautious of any possible scam wicks given how normie-friendly this coin is. If we break the $16.6 low, there is a 50/50 chance of visiting the white trend line at ~$12. Trade : Long Entry: $17.5 TP: $20, $24, $34, Delivery of Metaverse Project SL: $15
Long
by linebands
2
BTC neutral, the crabs are in controlFrom our last idea, I incorrectly drew the Elliot wave count from the lack of attention to high time frames (weekly and above) and overlooked a bearish momentum divergence that printed back in early November. I believe we're on the verge of entering bear market territory if 47k doesn't hold over the next couple of days and weeks. 47k at the moment has confluence with the ATH 1 white trendline, the Elliot wave impulse PoC now sitting at ~46k, the developing weekly PoC, and the 350 D MA. But the most important line of defense out of those four would be the 350D MA. If you look back on previous market cycles anytime we've closed below it on a standard daily candle, it resulted in a multi-month sometimes a multi-year bear market , and we did so on Dec. 13th hinting a warning of another downtrend. This downtrend will more than likely happen once we've consolidated a bit more likely until we hit ~5% levels on the BBWP indicator noted below. On the shorter time frames, BTC print a 4-hour bullish divergence as well as confirmed the breakout of an important trendline, but failed to continuously move in an uptrend until the posting of this idea. A short idea would be invalidated if either: We blast past the VAH of 52k $ETH closes past $4050 on a daily candle Bull div. on daily and higher time frames Breakout of trendline resistance or the 0.786 fib level noted below: You could argue that the bearish case as of now is invalidated from a fundamental perspective if you take into account the debt ceiling being risen as a bullish move, and it is. If you are going short I suggest having a very short stop loss at the impulse VAH, taking profit along the way of the fib levels on the chart. Note, this uptrend may also not be invalidated given evidence of diminishing returns and interest of institutional investors which will help with cooling off some volatility. The same goes for the $SPX; since it has a bit more room for an uptrend against inflation, I believe the overall trend is an uptrend, it's just that for now there is room for another selloff until ~30k. Overall, I'm neutral and uncertain on $BTC's movement at the moment until either we fail to support 47k to confirm a bear trend or break out past 50k to confirm a bull trend. You could argue 42k is the bottom if we consolidate there again slowly over the next couple of days seeing as how $BTC did hit another low a bit close to the initial oversold wick that went down to 29k on May 19th. Debt ceiling rising + daily candle closing under 350D MA could equal more crabbing and consolidation from here on out for a while. More easier to read chart to overview: Key Levels: Support -47k (Impulse PoC, ATH 1 white trendline, 350D MA) -40k (0.618 fib level, M S2 CPR) -Impulse VAL at 31k -S3 M CPR at 29k -1.272 fib at 22.5k -ATH 1 white trendline -ATH 2 white trendline Resistance -49.6k(S1 M CPR, 0.786 fib on shorter timeframes) -Impulse VAH at 52k -M CPR Lines at 59k, 69k, 79k, and 89k Invalidations: -Impulse VAH at 52k -28k for Impulse wave start.
BITSTAMP:BTCUSD
by linebands
BTCUSD Long, Knifecatch to 74kSorry for the lack of posts over the past two weeks, been busy w/ life. Anyways, I believe this downtrend is nearly over if we consider this recent correct market structure as a running flat . The only concern with this is that within the b-wave, its ascending triple Elliott wave has an overextended wave Z with a ~1.618 fib level rather than a 1.272 fib as stated on one of the guidelines according to Elliott wave forecast. But ignoring this, it perfectly fits within a running flat corrective wave. As of now, it seems like it'll end near the primary wave 0.382 fib level at ~54k. But we must hold 51k or else the entire market structure shifts bearish heading to sub 30k levels as it is an invalidation level for wave 3. The oscillator below, the BBWP (Bollinger Bands Width Percentile) is reading a close high of volatility at 90% atm. Going at or above 95 followed by a drop crossing under the associated MA (the white line) will signal the start of a consolidation phase . I didn't include it in this chart, but there is also a momentum bullish divergence on the 1 hour that growing has yet to be confirmed with a crossover of the zero line. Key levels: SUPPORT - Primary wave 0.382 fib at 54k - M CPR Pivot at 54k - 3 Month Value Area High at 51k - 3 Month PoC at 47k - Lower Parallel Channel at 53k RESISTANCE - Confluence of multiple monthly value areas at 59k - Monthly Value Area High at 65k - M CPR R1 at 66k - Long term trendline since March ATH at 67-68k - Intermediate wave 5 target at 74k - M CPR R2 at 78k INVALIDATION - Primary wave 3 0.5 fib at 51k There are more levels to look at on the chart if you are interested in long-term plays. I will post an interesting chart soon, so be on the lookout for it.
BITFINEX:BTCUSDLong
by linebands
3
BTC : 12hr Bollinger Bands WidthHere 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 :
BITSTAMP:BTCUSD
by Durbtrade
4
Bollinger Bands Explained, All you need to know Hello everyone, as we all know the market action discounts everything :) _________________________________Make sure to Like and Follow if you like the idea_________________________________ In today’s video we are going to be talking about the Bollinger bands , How are they constricted and how to use to try to identify trades in different financial markets. Some people think about the Bollinger bonds as a complicated indicator but after you watch this video you will see how easy it is to use. Lets start with the theory before we see a real life example : The Bollinger bands were developed by a man called John Bollinger, so no surprised where the name came from. So the Bollinger breaks down to a Moving average and some volatility bands around that, What we have first is a moving average and on the top and bottom of that moving average we have our bands and they usually are located 2 standard deviations away from the Moving Average. The idea here is to describe how prices are dispersed around an average value, so basically, these bands are here to show where the price is going and how it's moving for about 95% of the time. So how do we use this indicator : 1) The first way people use this indicator is when the market price reaches the edges of the Bands, The upper end for example shows that it's possible that the market is overextended and a drop in price will happen, if the price reached the lower end then the market will be oversold and a bounce in price is due. 2) The second way to use this indicator is called Targets, It simply allows us to set up targets for the trade, if we buy near the lower Band then we could set a target above the Moving average or near the higher Band. Because these bands are based on price volatility they won't stay at the same place from the MA, That means if the volatility drops then the bands will get tighter (Squeeze) , and if the volatility goes up then the bands will go further away from each other (Width). People use this method to try to understand what's going on with the current trend, so basically if the bands are really far away then it’s a sign that the trend is currently ending, and if they are really close then we could be seeing an explosive move in the trend IMPORTANT I always say that you always need to use different indicators when you analyze any chart, this way you will minimize your risk and have a better understanding on how the market is currently doing. I hope I’ve made the Bollinger Bands easy for you to understand and please ask if you have any questions . Hit that like if you found this helpful and check out my other video about the Moving Average, Stochastic oscillator, The Dow Jones Theory, How To Trade Breakouts, The RSI and The MACD, links will be bellow
OANDA:XAUUSDEducation
by GabiDahduh
4
How To Measure Volatility Easily|Advanced Usage Of BBHi traders! As we said in the last article it’s kinda complicated problem to measure volatility. However, it’s one of the most important features of market. Any strategy directly depends on the volatility level of coin. Moreover, it provides signals of entry and exit. BB Width is one of the most accurate tool to measure volatility. The Bollinger Band Width is the difference between the upper and the lower Bollinger Bands divided by the middle band. This technical indicator provides an easy way to visualize consolidation before price movements (low bandwidth values) or periods of higher volatility (high bandwidth values). The Bollinger Band Width uses the same two parameters as the Bollinger Bands: a simple moving- average period (for the middle band) and the number of standard deviations by which the upper and lower bands should be offset from the middle band. How does it works? During a period of rising price volatility, the distance between the two bands will widen and Bollinger Band Width will increase. Conversely, during a period of low market volatility, the distance between the two bands will contract and Bollinger Band Width will decrease. There is a tendency for bands to alternate between expansion and contraction. When the bands are relatively far apart, that is often a sign that the current trend may be ending. When the distance between the two bands is relatively narrow that is often a sign that a market or security may be about to initiate a pronounced move in either direction.
Education
by Skyrexio
This could trigger a buy sign on SPX!The SPX is moving sideways for now, and the Bollinger Bands are getting tighter. This could indicate that the next explosion will happen soon, the question is, it'll be up or down? We just hit our target at 4,118, but the index is doing a hammer (or a spinning bottom?) close to the support, and it is in the lower part of the band, meaning that an upwards movement is more interesting. Anything above the 4,158 is a buy, but watch out the 4,118, as this point is still an important one! The futures are dropping a little right now, but it might be worth to check them as well! If you liked this trading idea, remember to click on the “Follow” button to get more trading ideas like this, and if you agree with me, click on the “Agree” button 😉. See you soon, Melissa.
SP:SPX
by UnknownUnicorn21312077
ADA - Bollinger Bands SqueezeFor any crypto asset, periods of consolidation are a really good thing as it brings everything into equilibrium to enable a new higher support launchpad to be built to which a new higher price can be reached. You must remember that consolidation is not done at a constant level but within a range. Have a peek at this ADA daily chart, you can clearly see what has happened 3 time before after a period of consolidation in a Bollinger Bands Squeeze and also Sideways Momentum on the RSI! Yes, it does look good & it looks like there will be exciting times ahead, because remember that ADA is still in a longterm uptrend. Periods of consolidation vary in length so only time will tell. Obviously nothing is set in stone so the only question is, do you have the patience to hold & wait for the outcome? If you don't know what consolidation is and if you don't realise that ADA is in a consolidation phase, then you will probably miss the next rocket upwards and end up buying at the top again screaming "shit coin" as ADA enters another period of consolidation. I hope this is helpful. Good Luck 👍🔥🚀🌔
BINANCE:ADAUSDLong
by entertheroach
9
EGLDUSDT Volatility Expansion Starts!Hello trader, EGLD just broke out from its ATH at 30 USDT and rising. I want to test and see the "volatility expansion &price increase" correlation idea on this one. As you can see I have my bollinger band width indicator and stoch rsi on at the bottom. BBW is currently sitting around 0.41 and previous peak was around 1.28. Volatility has at least 3x room to grow. On top of that, stoch rsi is at fantastic neutral levels in the daily TF and rising, altough intra-day TF looks a bit overbought, i am not so sure about fixating on those since i am a trend follower. If you are using intraday TF in your trading, consider this overbought situation in your trading setups. Potential resistance levels wise, i see around 35 USDT level is the first major resistance coming from fib-retracement of 1.618. So keep an eye on that one for some TP targets.
Long
by Shanks21
Btc sitrepBtc has been absorbing sellers each time 10k has been broken and late fomo shorts have been rekt over and over. Judging from this and how high cap alts have behaved on every bounce, I would say we will see a face ripping short squeeze unless the stock market completely collapses on Tue/Wed. Crypto is a risk on asset and highly correlated with equities in a crash scenarios (as seen in Mar). Right now people are looking for a stability to buy into crypto again.
Long
by BitmexDegen