double Bollinger BandsThe Double Bollinger Band consists of an average and two Bollingers and two backgrounds, each of which has separate settings and can be approved more strongly for trades. Moves and vice versa. With the price chart coming out of the second band, the price is much more likely to move in the same direction.
To use this feature, we had to use two Bollinger indicators with different settings at the same time, but we no longer need to do this with the Double Bollinger.
Its main use is crypto, but it can be used in all markets
Doublebollingerbands
Double Bollinger BandThe double bollinger band indicator uses a normal bollinger band with a multitude of 2 and on outer band with a multitude of 3. The indicator shows momentum by the price being stuck between the higher or lower bands. If price is in the middle then it is a neutral zone. The band's moving average is a default of 20 sma but included there are two extra simple moving averages just as extra indicators. This is my first published code and the code is messy; however, it gets the job done nice and simple. (:
Enjoy!
Luckscout's Double Bollinger Bands StrategyLong Trade Setups:
To go long (to buy), you have to wait for one of the candlesticks to close above the BB upper band. (background color is green)
Short Trade Setups:
To go short (to sell), you have to wait for one of the candlesticks to close below the BB lower band. (background color is red)
How To Maximize Your Profit?
As I explained above, this trading system is good in catching the trends. Therefore, you’d better to take the advantage of the strong movements and maximize your profit.
When there is a strong trade setup, you can also take two positions with the same stop loss, when there is a trade setup based on the Double Bollinger Bands trading system. Set a 2 x SL target for the first position, and no target for the second one. If the first position hits the target, move the second’s position stop loss to breakeven and hold it (TLDR : Hold a sell as long as background is red)
In case of a long position, hold the second position as long as the candlesticks form between the BB1 and BB2 upper bands, or above the Bollinger Middle Band. Close the second position when candlesticks start crossing the BB1 upper bands, or when one of the candlesticks breaks below the Bollinger Middle Band . (TLDR : Holda buy as long as background is green)
