E9 Bollinger RangeThe E9 Bollinger Range is a technical trading tool that leverages Bollinger Bands to track volatility and price deviations, along with additional trend filtering via EMAs.
The script visually enhances price action with a combination of trend-filtering EMAs, bar colouring for trend direction, signals to indicate potential buy and sell points based on price extension and engulfing patterns.
Here’s a breakdown of its key components:
Bollinger Bands: The strategy plots multiple Bollinger Band deviations to create different price levels. The furthest deviation bands act as warning signs for traders when price extends significantly, signaling potential overbought or oversold conditions.
Bar Colouring: Visual bar colouring is applied to clearly indicate trend direction: green bars for an uptrend and red bars for a downtrend.
EMA Filtering: Two EMAs (50 and 200) are used to help filter out false signals, giving traders a better sense of the underlying trend.
This combination of signals, visual elements, and trend filtering provides traders with a systematic approach to identifying price deviations and taking advantage of market corrections.
Brief History of Bollinger Bands
Bollinger Bands were developed by John Bollinger in the early 1980s as a tool to measure price volatility in financial markets. The bands consist of a moving average (typically 20 periods) with upper and lower bands placed two standard deviations away. These bands expand and contract based on market volatility, offering traders a visual representation of price extremes and potential reversal zones.
John Bollinger’s work revolutionized technical analysis by incorporating volatility into trend detection. His bands remain widely used across markets, including stocks, commodities, and cryptocurrencies. With the ability to highlight overbought and oversold conditions, Bollinger Bands have become a staple in many trading strategies.
Bollingerbandstrategy
Bollinger Band + Mid BandBollinger Band + Mid Band
This indicator combines the classic Bollinger Bands with enhanced customization options, allowing traders to fine-tune the settings according to their specific strategies.
Key Features:
Moving Average Flexibility: Choose between Simple Moving Average (SMA), Exponential Moving Average (EMA), or Weighted Moving Average (WMA) as the central basis for the Bollinger Bands. This flexibility allows you to align the indicator with your preferred method of trend analysis.
Dual Band Deviation: The indicator includes two sets of upper and lower bands based on different standard deviation multipliers. This helps you analyze both the tightness of price action and potential breakout zones.
Customizable Colors: The mid-band, upper bands, and lower bands can be fully customized in terms of color, allowing you to personalize the visual representation of the indicator on your charts.
Dynamic Transparency: The space between the outer Bollinger Bands can be filled with a customizable transparent color, making it easy to visualize price movements within the bands.
Alerts for Crossovers: Alerts are triggered whenever the price crosses above the upper band or below the lower band, giving you timely notifications of potential breakout or breakdown scenarios.
Overbought/Oversold Visualization: The background of the chart changes color when the price crosses above the upper band (indicating overbought conditions) or below the lower band (indicating oversold conditions), providing a visual cue to help you identify market extremes.
Labeling for Significant Events: Labels appear on the chart whenever the price crosses the upper or lower bands, helping you quickly identify key moments for further analysis.
This script is designed for traders who want to leverage Bollinger Bands in their technical analysis but require additional flexibility and customization options. Whether you're using it for trend analysis, volatility assessment, or identifying overbought and oversold conditions, this tool can be tailored to fit a wide variety of trading styles.
Usage:
Ideal for traders looking to enhance the standard Bollinger Bands with more dynamic and customizable features.
Suitable for any market, including stocks, forex, and cryptocurrencies.
Useful in identifying volatility squeezes, breakouts, and potential reversal points.
Hullinger Bands [AlgoAlpha]🎯 Introducing the Hullinger Bands Indicator ! 🎯
Maximize your trading precision with the Hullinger Bands , an advanced tool that combines the strengths of Hull Moving Averages and Bollinger Bands for a robust trading strategy. This indicator is designed to give traders clear and actionable signals, helping you identify trend changes and optimize entry and exit points with confidence.
✨ Key Features :
📊 Dual-Length Settings : Customize your main and TP signal lengths to fit your trading style.
🎯 Enhanced Band Accuracy : The indicator uses a modified standard deviation calculation for more reliable volatility measures.
🟢🔴 Color-Coded Signals : Easily spot bullish and bearish conditions with customizable color settings.
💡 Dynamic Alerts : Get notified for trend changes and TP signals with built-in alert conditions.
🚀 Quick Guide to Using Hullinger Bands
1. ⭐ Add the Indicator : Add the indicator to favorites by pressing the star icon. Adjust the settings to align with your trading preferences, such as length and multiplier values.
2. 🔍 Analyze Readings : Observe the color-coded bands for real-time insights into market conditions. When price is closer to the upper bands it suggests an overbought market and vice versa if price is closer to the lower bands. Price being above or below the basis can be a trend indicator.
3. 🔔 Set Alerts : Activate alerts for bullish/bearish trends and TP signals, ensuring you never miss a crucial market movement.
🔍 How It Works
The Hullinger Bands indicator calculates a central line (basis) using a simple moving average, while the upper and lower bands are derived from a modified standard deviation of price movements. Unlike the traditional Bollinger Bands, the standard deviation in the Hullinger bands uses the Hull Moving Average instead of the Simple Moving Average to calculate the average variance for standard deviation calculations, this give the modified standard deviation output "memory" and the bands can be observed expanding even after the price has started consolidating, this can identify when the trend has exhausted better as the distance between the price and the bands is more apparent. The color of the bands changes dynamically, based on the proximity of the closing price to the bands, providing instant visual cues for market sentiment. The indicator also plots TP signals when price crosses these bands, allowing traders to make informed decisions. Additionally, alerts are configured to notify you of crucial market shifts, ensuring you stay ahead of the curve.
Bollinger Bands Enhanced StrategyOverview
The common practice of using Bollinger bands is to use it for building mean reversion or squeeze momentum strategies. In the current script Bollinger Bands Enhanced Strategy we are trying to combine the strengths of both strategies types. It utilizes Bollinger Bands indicator to buy the local dip and activates trailing profit system after reaching the user given number of Average True Ranges (ATR). Also it uses 200 period EMA to filter trades only in the direction of a trend. Strategy can execute only long trades.
Unique Features
Trailing Profit System: Strategy uses user given number of ATR to activate trailing take profit. If price has already reached the trailing profit activation level, scrip will close long trade if price closes below Bollinger Bands middle line.
Configurable Trading Periods: Users can tailor the strategy to specific market windows, adapting to different market conditions.
Major Trend Filter: Strategy utilizes 100 period EMA to take trades only in the direction of a trend.
Flexible Risk Management: Users can choose number of ATR as a stop loss (by default = 1.75) for trades. This is flexible approach because ATR is recalculated on every candle, therefore stop-loss readjusted to the current volatility.
Methodology
First of all, script checks if currently price is above the 200-period exponential moving average EMA. EMA is used to establish the current trend. Script will take long trades on if this filtering system showing us the uptrend. Then the strategy executes the long trade if candle’s low below the lower Bollinger band. To calculate the middle Bollinger line, we use the standard 20-period simple moving average (SMA), lower band is calculated by the substruction from middle line the standard deviation multiplied by user given value (by default = 2).
When long trade executed, script places stop-loss at the price level below the entry price by user defined number of ATR (by default = 1.75). This stop-loss level recalculates at every candle while trade is open according to the current candle ATR value. Also strategy set the trailing profit activation level at the price above the position average price by user given number of ATR (by default = 2.25). It is also recalculated every candle according to ATR value. When price hit this level script plotted the triangle with the label “Strong Uptrend” and start trail the price at the middle Bollinger line. It also started to be plotted as a green line.
When price close below this trailing level script closes the long trade and search for the next trade opportunity.
Risk Management
The strategy employs a combined and flexible approach to risk management:
It allows positions to ride the trend as long as the price continues to move favorably, aiming to capture significant price movements. It features a user-defined ATR stop loss parameter to mitigate risks based on individual risk tolerance. By default, this stop-loss is set to a 1.75*ATR drop from the entry point, but it can be adjusted according to the trader's preferences.
There is no fixed take profit, but strategy allows user to define user the ATR trailing profit activation parameter. By default, this stop-loss is set to a 2.25*ATR growth from the entry point, but it can be adjusted according to the trader's preferences.
Justification of Methodology
This strategy leverages Bollinger bangs indicator to open long trades in the local dips. If price reached the lower band there is a high probability of bounce. Here is an issue: during the strong downtrend price can constantly goes down without any significant correction. That’s why we decided to use 200-period EMA as a trend filter to increase the probability of opening long trades during major uptrend only.
Usually, Bollinger Bands indicator is using for mean reversion or breakout strategies. Both of them have the disadvantages. The mean reversion buys the dip, but closes on the return to some mean value. Therefore, it usually misses the major trend moves. The breakout strategies usually have the issue with too high buy price because to have the breakout confirmation price shall break some price level. Therefore, in such strategies traders need to set the large stop-loss, which decreases potential reward to risk ratio.
In this strategy we are trying to combine the best features of both types of strategies. Script utilizes ate ATR to setup the stop-loss and trailing profit activation levels. ATR takes into account the current volatility. Therefore, when we setup stop-loss with the user-given number of ATR we increase the probability to decrease the number of false stop outs. The trailing profit concept is trying to add the beat feature from breakout strategies and increase probability to stay in trade while uptrend is developing. When price hit the trailing profit activation level, script started to trail the price with middle line if Bollinger bands indicator. Only when candle closes below the middle line script closes the long trade.
Backtest Results
Operating window: Date range of backtests is 2020.10.01 - 2024.07.01. It is chosen to let the strategy to close all opened positions.
Commission and Slippage: Includes a standard Binance commission of 0.1% and accounts for possible slippage over 5 ticks.
Initial capital: 10000 USDT
Percent of capital used in every trade: 30%
Maximum Single Position Loss: -9.78%
Maximum Single Profit: +25.62%
Net Profit: +6778.11 USDT (+67.78%)
Total Trades: 111 (48.65% win rate)
Profit Factor: 2.065
Maximum Accumulated Loss: 853.56 USDT (-6.60%)
Average Profit per Trade: 61.06 USDT (+1.62%)
Average Trade Duration: 76 hours
These results are obtained with realistic parameters representing trading conditions observed at major exchanges such as Binance and with realistic trading portfolio usage parameters.
How to Use
Add the script to favorites for easy access.
Apply to the desired timeframe and chart (optimal performance observed on 4h BTC/USDT).
Configure settings using the dropdown choice list in the built-in menu.
Set up alerts to automate strategy positions through web hook with the text: {{strategy.order.alert_message}}
Disclaimer:
Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test strategies in a simulated environment before live implementation
Double Vegas SuperTrend Enhanced - Strategy [presentTrading]
█ Introduction and How It Is Different
The "Double Vegas SuperTrend Enhanced" strategy is a sophisticated trading system that combines two Vegas SuperTrend Enhanced. Very Powerful!
Let's celebrate the joy of Children's Day on June 1st! Enjoyyy!
BTCUSD LS performance
The strategy aims to pinpoint market trends with greater accuracy and generate trades that align with the overall market direction.
This approach differentiates itself by integrating volatility adjustments and leveraging the Vegas Channel's width to refine the SuperTrend calculations, resulting in a dynamic and responsive trading system.
Additionally, the strategy incorporates customizable take-profit and stop-loss levels, providing traders with a robust framework for risk management.
-> check Vegas SuperTrend Enhanced - Strategy
█ Strategy, How It Works: Detailed Explanation
🔶 Vegas Channel and SuperTrend Calculations
The strategy initiates by calculating the Vegas Channel, which is derived from a simple moving average (SMA) and the standard deviation (STD) of the closing prices over a specified window length. This channel helps in measuring market volatility and forms the basis for adjusting the SuperTrend indicator.
Vegas Channel Calculation:
- vegasMovingAverage = SMA(close, vegasWindow)
- vegasChannelStdDev = STD(close, vegasWindow)
- vegasChannelUpper = vegasMovingAverage + vegasChannelStdDev
- vegasChannelLower = vegasMovingAverage - vegasChannelStdDev
SuperTrend Multiplier Adjustment:
- channelVolatilityWidth = vegasChannelUpper - vegasChannelLower
- adjustedMultiplier = superTrendMultiplierBase + volatilityAdjustmentFactor * (channelVolatilityWidth / vegasMovingAverage)
The adjusted multiplier enhances the SuperTrend's sensitivity to market volatility, making it more adaptable to changing market conditions.
BTCUSD Local picture.
🔶 Average True Range (ATR) and SuperTrend Values
The ATR is computed over a specified period to measure market volatility. Using the ATR and the adjusted multiplier, the SuperTrend upper and lower levels are determined.
ATR Calculation:
- averageTrueRange = ATR(atrPeriod)
**SuperTrend Calculation:**
- superTrendUpper = hlc3 - (adjustedMultiplier * averageTrueRange)
- superTrendLower = hlc3 + (adjustedMultiplier * averageTrueRange)
The SuperTrend levels are continuously updated based on the previous values and the current market trend direction. The market trend is determined by comparing the closing prices with the SuperTrend levels.
Trend Direction:
- If close > superTrendLowerPrev, then marketTrend = 1 (bullish)
- If close < superTrendUpperPrev, then marketTrend = -1 (bearish)
🔶 Trade Entry and Exit Conditions
The strategy generates trade signals based on the alignment of both SuperTrends. Trades are executed only when both SuperTrends indicate the same market direction.
Entry Conditions:
- Long Position: Both SuperTrends must signal a bullish trend.
- Short Position: Both SuperTrends must signal a bearish trend.
Exit Conditions:
- Positions are exited if either SuperTrend reverses its trend direction.
- Additional conditions include holding periods and configurable take-profit and stop-loss levels.
█ Trade Direction
The strategy allows traders to specify the desired trade direction through a customizable input setting. Options include:
- Long: Only enter long positions.
- Short: Only enter short positions.
- Both: Enter both long and short positions based on the market conditions.
█ Usage
To utilize the "Double Vegas SuperTrend Enhanced" strategy, traders need to configure the input settings according to their trading preferences and market conditions. The strategy includes parameters for ATR periods, Vegas Channel window lengths, SuperTrend multipliers, volatility adjustment factors, and risk management settings such as hold days, take-profit, and stop-loss percentages.
█ Default Settings
The strategy comes with default settings that can be adjusted to fit individual trading styles:
- trade Direction: Both (allows trading in both long and short directions for maximum flexibility).
- ATR Periods: 10 for SuperTrend 1 and 5 for SuperTrend 2 (shorter ATR period results in more sensitivity to recent price movements).
- Vegas Window Lengths: 100 for SuperTrend 1 and 200 for SuperTrend 2 (longer window length results in smoother moving averages and less sensitivity to short-term volatility).
- SuperTrend Multipliers: 5 for SuperTrend 1 and 7 for SuperTrend 2 (higher multipliers lead to wider SuperTrend channels, reducing the frequency of trades).
- Volatility Adjustment Factors: 5 for SuperTrend 1 and 7 for SuperTrend 2 (higher adjustment factors increase the responsiveness to changes in market volatility).
- Hold Days: 5 (defines the minimum duration a position is held, ensuring trades are not exited prematurely).
- Take Profit: 30% (sets the target profit level to lock in gains).
- Stop Loss: 20% (sets the maximum acceptable loss level to mitigate risk).
Johnny's Adjusted BB Buy/Sell Signal"Johnny's Adjusted BB Buy/Sell Signal" leverages Bollinger Bands and moving averages to provide dynamic buy and sell signals based on market conditions. This indicator is particularly useful for traders looking to identify strategic entry and exit points based on volatility and trend analysis.
How It Works
Bollinger Bands Setup: The indicator calculates Bollinger Bands using a specified length and multiplier. These bands serve to identify potential overbought (upper band) or oversold (lower band) conditions.
Moving Averages: Two moving averages are calculated — a trend moving average (trendMA) and a long-term moving average (longTermMA) — to gauge the market's direction over different time frames.
Market Phase Determination: The script classifies the market into bullish or bearish phases based on the relationship of the closing price to the long-term moving average.
Strong Buy and Sell Signals: Enhanced signals are generated based on how significantly the price deviates from the Bollinger Bands, coupled with the average candle size over a specified lookback period. The signals are adjusted based on whether the market is bullish or bearish:
In bullish markets, a strong buy signal is triggered if the price significantly drops below the lower Bollinger Band. Conversely, a strong sell signal is activated when the price rises well above the upper band.
In bearish markets, these signals are modified to be more conservative, adjusting the thresholds for triggering strong buy and sell signals.
Features:
Flexibility: Users can adjust the length of the Bollinger Bands and moving averages, as well as the multipliers and factors that determine the strength of buy and sell signals, making it highly customizable to different trading styles and market conditions.
Visual Aids: The script vividly plots the Bollinger Bands and moving averages, and signals are visually represented on the chart, allowing traders to quickly assess trading opportunities:
Regular buy and sell signals are indicated by simple shapes below or above price bars.
Strong buy and sell signals are highlighted with distinctive colors and placed prominently to catch the trader's attention.
Background Coloring: The background color changes based on the market phase, providing an immediate visual cue of the market's overall sentiment.
Usage:
This indicator is ideal for traders who rely on technical analysis to guide their trading decisions. By integrating both Bollinger Bands and moving averages, it provides a multi-faceted view of market trends and volatility, making it suitable for identifying potential reversals and continuation patterns. Traders can use this tool to enhance their understanding of market dynamics and refine their trading strategies accordingly.
Best scalping toolExplanation:
This script is a comprehensive indicator that combines three essential technical analysis tools: Money Flow Index (MFI), Relative Strength Index (RSI), and Bollinger Bands (Bollinger %B). It provides insights into market conditions related to cross points of mfi,rsi and B%B.
A buy condition is created when the last candle RSI and MFI are under the bollinger bands, and then in the actual candle the RSI cross up the bollinger low band.
A sell condition is created when the last candle RSI and MFI are above the bollinger bands, and then in the actual candle the RSI cross down the bollinger high band.
Key Components:
MFI (Money Flow Index):
Utilizes the MFI indicator based on a specified length.
Overbought and oversold levels (80 and 20, respectively).
RSI (Relative Strength Index): (Adapted to the mfi chart)
Allows selection of different moving average types (SMA, EMA, etc.) for the RSI calculation.
RSI along with upper and lower bands (70 and 30).
Bollinger Bands:
Provides upper and lower Bollinger Bands based on the RSI's standard deviation.
Visualization Options:
Allows the user to choose between show the buy (green arrow) and the sell (red arrow) .
How It Works:
The indicator amalgamates these three powerful technical indicators to help traders identify potential entry or exit points. The green arrow its a buy signal and the red arrow is a sell signal.
By offering configurable settings and clear visual cues, this indicator assists traders in recognizing critical market conditions and potential trading opportunities.
Disclaimer: This indicator should be used as a tool in a broader trading strategy and not solely for making trading decisions. It's recommended to combine it with other technical or fundamental analysis for comprehensive trading decisions.
SOLANA Performance & Volatility Analysis BB%Overview:
The script provides an in-depth analysis of Solana's performance and volatility. It showcases Solana's price, its inverse relationship, its own volatility, and even juxtaposes it against Bitcoin's 24-hour historical volatility. All of these are presented using the Bollinger Bands Percentage (BB%) methodology to normalise the price and volatility values between 0 and 1.
Key Components:
Inputs:
SOLANA PRICE (SOLUSD): The price of Solana.
SOLANA INVERSE (SOLUSDT.3S): The inverse of Solana's price.
SOLANA VOLATILITY (SOLUSDSHORTS): Volatility for Solana.
BITCOIN 24 HOUR HISTORICAL VOLATILITY (BVOL24H): Bitcoin's volatility over the past 24 hours.
BB Calculations:
The script uses the Bollinger Bands methodology to calculate the mean (SMA) and the standard deviation of the prices and volatilities over a certain period (default is 20 periods). The calculated upper and lower bands help in normalising the values to the range of 0 to 1.
Normalised Metrics Plotting:
For better visualisation and comparative analysis, the normalised values for:
Solana Price
Solana Inverse
Solana Volatility
Bitcoin 24hr Volatility
are plotted with steplines.
Band Plotting:
Bands are plotted at 20%, 40%, 60%, and 80% levels to serve as reference points. The area between the 40% and 60% bands is shaded to highlight the median region.
Colour Coding:
Different colours are used for easy differentiation:
Solana Price: Blue
Solana Inverse: Red
Solana Volatility: Green
Bitcoin 24hr Volatility: White
Licence & Creator:
The script adheres to the Mozilla Public Licence 2.0 and is credited to the author, "Volatility_Vibes".
Works well with Breaks and Retests with Volatility Stop
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
Ahsan Tufail Precise MA Crossover Filter for Reliable SignalsIntroduction:
In the ever-evolving world of Forex trading, strategies that provide a competitive edge are highly sought after. The Moving Average (MA) crossover technique is a popular long-term approach, but its vulnerability to false signals can lead to potential losses. To overcome this challenge, we introduce a game-changing MA crossover filter designed to weed out false signals and unlock the full potential of this strategy. In this article, we delve into the mechanics of this filter, providing a comprehensive analysis of its components and how it enhances the accuracy of buy and sell signals.
The Power of the MA Crossover Filter:
The essence of our MA crossover filter lies in the integration of a specialized indicator that operates on a scale of 0 to 100. This ingenious indicator dynamically measures the distance between the middle Bollinger band and either the upper or lower Bollinger band. By analyzing the values of the last 504 candlesticks, it maps the range from 50 to 100 for the largest and smallest distances between the middle and upper Bollinger bands. Similarly, for values ranging from 0 to 50, it measures the distance between the middle and lower Bollinger bands.
Unveiling the Signal Execution Process:
The brilliance of this filter is revealed in its meticulous execution of buy and sell signals, which significantly reduces false crossovers. Let's explore the process step-by-step:
Buy Signal Precision:
To initiate a buy signal, the price must be positioned above the 200-period Simple Moving Average (SMA).
The filter validates the crossover by checking the indicator's value, ensuring it falls below the threshold of 25.
Sell Signal Accuracy:
For a sell signal, the price must be below the 200-period Simple Moving Average (SMA).
The filter confirms the crossover by verifying the indicator's value, which should exceed the threshold of 75.
This selective approach ensures that only high-confidence crossovers are considered, maximizing the potential for profitable trades.
Fine-Tuning the Filter for Optimal Performance:
While the MA crossover filter exhibits its prowess in GBPUSD and EURUSD currency pairs, it may require adjustments for other pairs. Currency pairs possess unique characteristics, and adapting the filter to specific behavior is crucial for its success.
To fine-tune the filter for alternative currency pairs, traders should conduct rigorous backtesting and analyze historical price data. By experimenting with indicator threshold values, traders can calibrate the filter to accurately match the dynamics of the target currency pair. This iterative process allows for customization, ultimately resulting in a finely-tuned filter that aligns with the unique behavior of the selected market.
Conclusion:
The MA crossover filter represents a paradigm shift in long-term Forex trading strategies. By intelligently filtering false signals, this precision tool unleashes the true potential of the MA crossover technique, elevating its profitability and enhancing overall trading performance. While no strategy guarantees absolute success, incorporating this filter empowers traders with a heightened level of confidence in their buy and sell signals. Embracing the power of this innovative filter can be a transformative step towards mastering Forex profits and staying ahead in the dynamic world of currency trading.
Banded Chikou Breakout — Quantifying Ichimoku MomentumTitle: Banded Chikou Breakout — Quantifying Ichimoku Momentum
Overview:
Banded Chikou Breakout (BCB) is a unique, algorithmic script designed to augment the capabilities of traders seeking substantial breakout opportunities. Constructed on the robust principles of the Ichimoku trading strategy, BCB is designed to quantify and filter the Chikou Span's significant breakouts above or below the price action. This script does not aim to replace the Ichimoku system; instead, it enhances it, providing an optimized tool for momentum trading.
Rationale:
Ichimoku traders often scrutinize the Chikou Span's position relative to price action to identify market trends. However, determining whether the Chikou Span is above or below due to a genuine trend or mere market noise can be challenging in choppy markets. BCB resolves this predicament by offering a unique way to interpret the Chikou Span's movement. It does so by quantifying the Chikou Span's momentum and utilizing Bollinger Bands to determine its significance. By effectively differentiating substantial movements from the insignificant, BCB can help traders better navigate the market and increase their potential for profitable trades.
How it Works:
BCB combines three key elements: a Momentum Script (simulating Chikou Span), a Bollinger Band Script, and a Timeframe Switcher, all working together to provide a refined trading perspective.
Momentum Script: Calculates the price difference between the current price and the price 'n' periods ago, transforming the Chikou Span into a quantifiable momentum value that signifies the strength and speed of a market move.
Bollinger Band Script: Computes a Simple Moving Average (SMA) around the momentum, plotting two 'bands' at a specified standard deviation from this SMA. This functionality allows traders to discern when the Chikou Span's momentum is abnormally high or low, signifying a potential significant breakout.
Timeframe Switcher: This feature lets traders apply the BCB script to a different timeframe from the one they are currently viewing. This capability can help traders identify higher timeframe breakouts and trade them with precision on the lower timeframe.
How to Use:
BCB is designed to complement the Ichimoku strategy for effective breakout identification.
Add the BCB script to your trading chart. It plots the momentum (yellow line) and Bollinger Bands (green lines) with the area between the bands shaded blue.
Utilize the Ichimoku strategy to identify larger and smaller timeframe trends.
Optional: Leverage the timeframe switcher to synchronize your trades with higher timeframe trends while operating on lower timeframes.
If the BCB momentum line crosses the upper Bollinger Band while the Ichimoku indicates a bullish trend, it signifies a potential significant upward breakout. Similarly, a cross below the lower band during a bearish trend could denote a significant downward breakout.
Remember, without the context provided by the Ichimoku system's trend analysis, BCB can yield false breakouts. It is, therefore, crucial to use these tools in tandem. I like to check for an Ichimoku trend on the 4H and 1H charts, and then use BCB on charts <60 minutes to capture trends with precision.
Multi Bollinger Bands with Over ZoneThis indicator is called "Multi Bollinger Bands with Over Zone". The indicator uses linear regression to calculate the regression line and standard deviation to calculate the upper and lower deviation lines. It also plots filled areas between the deviation lines to highlight overbought and oversold zones.
The indicator has several customizable inputs, including the length of the regression period, depth, and deviations used to calculate the deviation lines.
The regression line is plotted in green color with circle markers. The upper and lower deviation lines are plotted in blue and red colors, respectively. The area between the deviation lines is filled with light blue color for the overbought zone and light pink color for the oversold zone.
This indicator helps traders in identifying trends and potential price reversals. When the price is above the upper deviation line, it indicates a potential overbought zone, while when the price is below the lower deviation line, it indicates a potential oversold zone.
Please note that this indicator is only a tool for analysis and does not provide direct trading signals. It is important to combine this indicator with additional analysis and appropriate trading strategies.
5EMA BollingerBand Nifty Stock Scanner
What ?
We all heard about (well: over-heard) 5-EMA strategy. Which falls into the broader category of mean reversal type of trading setup.
What is mean reversal?
Price (or any time series, in fact) tries to follow a mean . Whenever price diverges from the mean it tries to meet it back.
It is empirically observed by some traders (I honestly don't know who first time observed it) that in Indian context specially, 5 Exponential Moving Average (5-EMA) works pretty good as that mean.
So whenever price moves away from that 5-EMA, it ultimately comes back and attain total nirvana :) Means: if price moved way higher than the 5EMA without touching it, then price will correct to meet it's 5-EMA and if price moved way lower, it will be uplifted to meet it's 5-EMA. Funny - but it works !
Now there are already enough social media coverage on this 5-EMA strategy/setup. Even TradingView has some excellent work done on these setups. Kudos to all those great souls.
So when we came to know about this, we were thinking what we should do for the community. Because it is well cover topic (specially in Indian context). Also, there are public indicators.
Then we thought why not come up with a scanner which will scan all the Nifty-50 constituent stocks and find out on the fly, real-time which all stocks are matching this 5-EMA setup and causing a Buy/Sell trade recommendation.
Hence here we are with the first version of our first scanner on the 5EMA setup (well it has some more masala than merely a 5-EMA setup).
Why?
Parts of why is already covered up.
Now instead of blindly following 5-EMA setup, we added the Bollinger band as well. Again: it's also not new. There are enough coverage in social media about the 5-EMA+BB strategy/setup. We mercilessly borrowed from all of these.
Suppose you have an indicator.
Now you apply the indicator in your chart. And then you need to (rock) and roll through your watchlist of Nifty-50 stocks (note: TradingView has no default watchlist of Nifty-50 stock by default - you have to create one custom watchlist to list all manually) to find out which all are matching the setup, need to take a note about the trade recomendations (entry, SL, target) and other stuffs like VWAP, Volume, volatility (Bollinger Band Width).
Not any more.
This scanner will track all the Nifty-50 stocks (technically: 40 stocks other than Banking stocks) and provide which one to Buy or Sell (if any), what's the entry, SL, target, where is the VWAP of the day, what's the picture in volume (high, low, rising, falling) and the implied volatility (using Bolling band width). Also it has a naive alerting mechanism as well.
In fact the code is there to monitor the (Future) OI also and all the OI drama (OI vs price and all the 4 stuffs like long build up, long unwinding, short covering, short buildup). But unfortunately, due to some limitations of the TradingView (that one can not monitor more than 40 `ta.security` call) we have to comment out the code. If you wish you can monitor only 20 stocks and enable the OI monitoring also (20 for stocks + 20 for their OI monitoring .. total 40 `ta.security` call).
How?
To know the divergence from 5-EMA we just check if the high of the candle (on closing) is below the 5-EMA. Then we check if the closing is inside the Bollinger Band (BB). That's a Buy signal. SL: low of the candle, T: middle and higher BB.
Just opposite for selling. 5-EMA low should be above 5-EMA and closing should be inside BB (lesser than BB higher level). That's a Sell signal. SL: high of the candle, T: middle and lower BB.
Along with we compare the current bar's volume with the last-20 bar VWMA (volume weighted moving average) to determine if the volume is high or low.
Present bar's volume is compared with the previous bar's volume to know if it's rising or falling.
VWAP is also determined using `ta.vwap` built-in support of TradingView.
The Bolling Band width is also notified, along with whether it is rising or falling (comparing with previous candle).
Simple, but effective.
Customization
As usual the EMA setup (5 default), the BB setup (20 SMA with 1.5 standard deviation), we provided option wherther to include or exclude BB role in the 5-EMA setup (as we found out there are two schools of thought .. some people use BB some don't. Lets make all happy :))
We also provide options to choose other symbols using Settings if they wish so. We have the default 40 non banking Nifty stocks (why non-banking? - Bank Nifty is in ATH :) .. enough :)). But if user wishes can monitor others too (provided the symbol is there in TradingView).
Although we strongly recommend the timeframe as 30 minutes , you can choose what's fit you most.
The output of the scanner is a table. By default the table is placed in the right-bottom (as we are most comfortable with that). However you can change per your wish. We have the option to choose that.
What is unique in it ?
This is more of an indicator. This is a scanner (of Nifty-50 stocks). So you can apply (our recommendation is in 30m timeframe) it to any chart (does not matter which chart it is) and it will show every 30 mins (which is also configurable) which all stocks (along with trade levels) to Buy and Sell according to the setup.
It will ease your trading activity.
You can concentrate only on the execution, the filtering you can leave it to this one.
Limitations
There is a build in limitation of the TradingView platform is that one can call only upto 40 securities API. Not beyond that. So naturally we are constraint by that. Otherwise we could monitor 190 Nifty F&O stocks itself.
30m is the recommended timeframe. In very lower (say 5m) this script tends to go out of heap (out of memory). Please note that also.
How to trade using this?
Put any chart in 30m (recommended) timeframe.
Apply this screener from Indicators (shortcut to launch indicators is just type / in your keyboard).
This will provide the Buy (shown in green color) or Sell (shown in red color) recommendations in a table, at every 30m candle closing.
Note the volume and BB width as well.
Wait for at least 2 5-minutes candles to close above/below the recommended level .
Take the trade with the SL and target mentioned.
Mentions
@QuantNomad. The whole implementation concept we mercilessly borrowed from him, even some of his code snippet we took it (after asking him through one of his videos comment section and seeking explicit permission which he readily granted within an hour). Thank You sir @QuantNomad. Indebted to you.
Monika (Rawat) ji: for reviewing, correcting, providing real time examples during live market hours, often compromising her own trading activities, about the effectiveness and usefulness of this setup. Thank You madam ji. Indebted to you.
There are innumerable contents in social media about this. Don't even know whom all we checked. Thanks to all of them.
Happy Trading (in stocks - isn't enough of Indices already?)
Disclaimer
This piece of software does not come up with any warrantee or any rights of not changing it over the future course of time.
We are not responsible for any trading/investment decision you are taking out of the outcome of this indicator.
SuperBollingerTrend (Expo)█ Overview
The SuperBollingerTrend indicator is a combination of two popular technical analysis tools, Bollinger Bands, and SuperTrend. By fusing these two indicators, SuperBollingerTrend aims to provide traders with a more comprehensive view of the market, accounting for both volatility and trend direction. By combining trend identification with volatility analysis, the SuperBollingerTrend indicator provides traders with valuable insights into potential trend changes. It recognizes that high volatility levels often accompany stronger price momentum, which can result in the formation of new trends or the continuation of existing ones.
█ How Volatility Impacts Trends
Volatility can impact trends by expanding or contracting them, triggering trend reversals, leading to breakouts, and influencing risk management decisions. Traders need to analyze and monitor volatility levels in conjunction with trend analysis to gain a comprehensive understanding of market dynamics.
█ How to use
Trend Reversals: High volatility can result in more dramatic price fluctuations, which may lead to sharp trend reversals. For example, a sudden increase in volatility can cause a bullish trend to transition into a bearish one, or vice versa, as traders react to significant price swings.
Volatility Breakouts: Volatility can trigger breakouts in trends. Breakouts occur when the price breaks through a significant support or resistance level, indicating a potential shift in the trend. Higher volatility levels can increase the likelihood of breakouts, as they indicate stronger market momentum and increased buying or selling pressure. This indicator triggers when the volatility increases, and if the price is near a key level when the indicator alerts, it might trigger a great trend.
█ Features
Peak Signal Move
The indicator calculates the peak price move for each ZigZag and displays it under each signal. This highlights how much the market moved between the signals.
Average ZigZag Move
All price moves between two signals are stored, and the average or the median is calculated and displayed in a table. This gives traders a great idea of how much the market moves on average between two signals.
Take Profit
The Take Profit line is placed at the average or the median price move and gives traders a great idea of what they can expect in average profit from the latest signals.
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Shorting when Bollinger Band Above Price with RSI (by Coinrule)The Bollinger Bands are among the most famous and widely used indicators. A Bollinger Band is a technical analysis tool defined by a set of trendlines plotted two standard deviations (positively and negatively) away from a simple moving average ( SMA ) of a security's price, but which can be adjusted to user preferences. They can suggest when an asset is oversold or overbought in the short term, thus providing the best time for buying and selling it.
The relative strength index ( RSI ) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to evaluate overvalued or undervalued conditions in the price of that security. The RSI can do more than point to overbought and oversold securities. It can also indicate securities primed for a trend reversal or corrective pullback in price. It can signal when to buy and sell. Traditionally, an RSI reading of 70 or above indicates an overbought situation. A reading of 30 or below indicates an oversold condition.
The short order is placed on assets that present strong momentum when it's more likely that it is about to reverse. The rule strategy places and closes the order when the following conditions are met:
ENTRY
The closing price is greater than the upper standard deviation of the Bollinger Bands
The RSI is less than 70.
EXIT
The trade is closed when the RSI is less than 70
The lower standard deviation of the Bollinger Band is less than the closing price.
This strategy was backtested from the beginning of 2022 to capture how this strategy would perform in a bear market.
The strategy assumes each order to trade 70% of the available capital to make the results more realistic. A trading fee of 0.1% is taken into account. The fee is aligned to the base fee applied on Binance, which is the largest cryptocurrency exchange by volume.
Bollinger Band Alert with RSI Filter IndicatorThis code is for a technical analysis indicator called Bollinger Band Alert with RSI Filter. It uses two tools: Bollinger Bands and Relative Strength Index (RSI) to identify potential trading signals in the market.
Bollinger Bands are lines plotted two standard deviations away from a simple moving average of the price of a stock or asset. They help traders determine whether prices are high or low on a relative basis.
The RSI is a momentum indicator that measures the strength of recent price changes to evaluate whether an asset is overbought or oversold.
The code has some input parameters that a user can change, such as length and multiplier, which are used to calculate the Bollinger Bands, and upper and lower RSI levels to define the overbought and oversold zones.
The code then uses if statements to generate alerts if certain conditions are met. The alert condition is triggered if the close price of an asset crosses above or below the upper or lower Bollinger Bands, and if the RSI is either above or below the overbought or oversold threshold levels.
Finally, the code generates plots to visualize the Bollinger Bands and displays triangles above or below the bars indicating when to enter a long or short position based on the strategy's criteria.
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.
Bollinger Band BreakoutThis strategy buys when price crosses above an upper Bollinger Band and sells when the lower band is breached. What makes this strategy different than others:
Long only with filtering for only showing strong tickers
Filter out trades below a moving average on both the current timeframe and a longer period timeframe to keep you out of bear markets
Optional ability to set a tighter initial stop level to increase exposure and decrease downside risk on freshly opened trades while you wait for the lower Bollinger Band trailing stop to catch up
Take entries/exits on wicks/stops or wait for candle closes before entry
Select which dates to backtest
Customize Bollinger Band parameters including the ability to have different values for the upper and lower band standard deviation
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.
Bollinger Band strategy with split, limit, stopEntering a short position after breaking the upper Bollinger Band, entering a long position when entering after breaking the lower Bollinger Band
Provides templates for how to display position average price, stop loss, and profit price using the plot function on the chart, and how to buy splits
After entering the position, if the price crosses the mid-band line, the stop loss is adjusted to the mid-band 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.
BOLLY BandsThis is a strategy using Bollinger Bands. The strategy is predicated around having low volatility in price action and then looking to capture a move when price starts to trend outside of the Bollinger bands. This strategy has only been backtested for 1 month but it has promising results so I will be sharing it looking for feedback. I run this strategy on the ERUSD 1 min chart.
Channels Strategy [JoseMetal]============
ENGLISH
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- Description:
This strategy is based on Bollinger Bands / Keltner Channel price "rebounds" (the idea of price bouncing from one band to another).
The strategy has several customizable options, which allows you to refine the strategy for your asset and timeframe.
You can customize settings for ALL indicators, Bollinger Bands (period and standard deviation), Keltner Channel (period and ATR multiplier) and ATR (period).
- AVAILABLE INDICATORS:
You can pick Bollinger Bands or Keltner Channels for the strategy, the chosen indicator will be plotted as well.
- CUSTOM CONDITIONS TO ENTER A POSITION:
1. Price breaks the band (low below lower band for LONG or high above higher band for SHORT).
2. Same as 1 but THEN (next candle) price closes INSIDE the bands.
3. Price breaks the band AND CLOSES OUT of the band (lower band for LONG and higher band for SHORT).
4. Same as 3 but THEN (next candle) price closes INSIDE the bands.
- STOP LOSS OPTIONS:
1. Previous wick (low of previous candle if LONG and high or previous candle if SHORT).
2. Extended band, you can customize settings for a second indicator with larger values to use it as STOP LOSS, for example, Bollinger Bands with 2 standard deviations to open positions and 3 for STOP LOSS.
3. ATR: you can pick average true ratio from a source (like closing price) with a multiplier to calculate STOP LOSS.
- TAKE PROFIT OPTIONS:
1. Opposite band (top band for LONGs, bottom band for SHORTs).
2. Moving average: Bollinger Bands simple moving average or Keltner Channel exponential moving average .
3. ATR: you can pick average true ratio from a source (like closing price) with a multiplier to calculate TAKE PROFIT.
- OTHER OPTIONS:
You can pick to trade only LONGs, only SHORTs, both or none (just indicator).
You can enable DYNAMIC TAKE PROFIT, which updates TAKE PROFIT on each candle, for example, if you pick "opposite band" as TAKE PROFIT, it'll update the TAKE PROFIT based on that, on every single new candle.
- Visual:
Bands shown will depend on the chosen indicator and it's settings.
ATR is only printed if used as STOP LOSS and/or TAKE PROFIT.
- Recommendations:
Recommended on DAILY timeframe , it works better with Keltner Channels rather than Bollinger Bands .
- Customization:
As you can see, almost everything is customizable, for colors and plotting styles check the "Style" tab.
Enjoy!
============
ESPAÑOL
============
- Descripción:
Esta estrategia se basa en los "rebotes" de precios en las Bandas de Bollinger / Canal de Keltner (la idea de que el precio rebote de una banda a otra).
La estrategia tiene varias opciones personalizables, lo que le permite refinar la estrategia para su activo y temporalidad favoritas.
Puedes personalizar la configuración de TODOS los indicadores, Bandas de Bollinger (periodo y desviación estándar), Canal de Keltner (periodo y multiplicador ATR) y ATR (periodo).
- INDICADORES DISPONIBLES:
Puedes elegir las Bandas de Bollinger o los Canales de Keltner para la estrategia, el indicador elegido será mostrado en pantalla.
- CONDICIONES PERSONALIZADAS PARA ENTRAR EN UNA POSICIÓN:
1. El precio rompe la banda (mínimo por debajo de la banda inferior para LONG o máximo por encima de la banda superior para SHORT).
2. Lo mismo que en el punto 1 pero ADEMÁS (en la siguiente vela) el precio cierra DENTRO de las bandas.
3. El precio rompe la banda Y CIERRA FUERA de la banda (banda inferior para LONG y banda superior para SHORT).
4. Igual que el 3 pero ADEMÁS (siguiente vela) el precio cierra DENTRO de las bandas.
- OPCIONES DE STOP LOSS:
1. Mecha anterior (mínimo de la vela anterior si es LONGy máximo de la vela anterior si es SHORT).
2. Banda extendida, puedes personalizar la configuración de un segundo indicador con valores más extensos para utilizarlo como STOP LOSS, por ejemplo, Bandas de Bollinger con 2 desviaciones estándar para abrir posiciones y 3 para STOP LOSS.
3. ATR: puedes elegir el average true ratio de una fuente (como el precio de cierre) con un multiplicador para calcular el STOP LOSS.
- OPCIONES DE TAKE PROFIT:
1. Banda opuesta (banda superior para LONGs, banda inferior para SHORTs).
2. Media móvil: media móvil simple de las Bandas de Bollinger o media móvil exponencial del Canal de Keltner .
3. ATR: se puede escoger el average true ratio de una fuente (como el precio de cierre) con un multiplicador para calcular el TAKE PROFIT.
- OTRAS OPCIONES:
Puedes elegir operar sólo con LONGs, sólo con SHORTs, ambos o ninguno (sólo el indicador).
Puedes activar el TAKE PROFIT DINÁMICO, que actualiza el TAKE PROFIT en cada vela, por ejemplo, si eliges "banda opuesta" como TAKE PROFIT, actualizará el TAKE PROFIT basado en eso, en cada nueva vela.
- Visual:
Las bandas mostradas dependerán del indicador elegido y de su configuración.
El ATR sólo se muestra si se utiliza como STOP LOSS y/o TAKE PROFIT.
- Recomendaciones:
Recomendada para temporalidad de DIARIO, funciona mejor con los Canales de Keltner que con las Bandas de Bollinger .
- Personalización:
Como puedes ver, casi todo es personalizable, para los colores y estilos de dibujo comprueba la pestaña "Estilo".
¡Que lo disfrutes!
