VWAP Fibonacci Bands (Zeiierman)█ Overview
The VWAP Fibonacci Bands is a sophisticated yet user-friendly indicator designed to assist traders in visualizing market trends, volatility, and potential support/resistance levels. Developed by Zeiierman, this tool integrates the MIDAS (Market Interpretation Data Analysis System) methodology with Standard Deviation Bands and user-defined Fibonacci levels to provide a comprehensive market analysis framework.
This indicator is built for traders who want a dynamic and customizable approach to understanding market movements, offering features that adapt to varying market conditions. Whether you're a scalper, swing trader, or long-term investor.
█ How It Works
⚪ Anchor Point System
The indicator begins its calculations based on an anchor point, which can be set to:
A specific date for historical analysis or alignment with significant market events.
A timeframe-based reset, dynamically restarting calculations at the beginning of each selected period (e.g., daily, weekly, or monthly).
This dual-anchor method ensures flexibility, allowing the indicator to align with various trading strategies.
⚪ MIDAS Calculation
The MIDAS calculation is central to this indicator. It uses cumulative price and volume data to compute a volume-weighted average price (VWAP), offering a trendline that reflects the true value weighted by trading activity.
⚪ Standard Deviation Bands
The upper and lower bands are calculated using the standard deviation of price movements around the MIDAS line.
⚪ Fibonacci Levels
User-defined Fibonacci ratios are used to plot additional support and resistance levels between the bands. These levels provide visual cues for potential price reversals or trend continuations.
█ How to Use
⚪ Trend Identification
Uptrend: The price remains above the MIDAS line.
Downtrend: The price stays below the MIDAS line and aligns with the lower bands.
⚪ Support and Resistance
The upper and lower bands act as support and resistance levels.
Fibonacci levels provide intermediate zones for potential price reversals.
⚪ Volatility Analysis
Wider bands indicate periods of high volatility.
Narrower bands suggest low-volatility conditions, often preceding breakouts.
⚪ Overbought/Oversold Conditions
Look for the price beyond the upper or lower bands to identify extreme conditions.
█ Settings
Set Anchor Method
Anchor Method: Choose between Timeframe or Date to define the starting point of calculations.
Anchor Timeframe: For Timeframe mode, specify the interval (e.g., Daily, Weekly).
Anchor Date: For Date mode, set the exact starting date for historical alignment.
Set Std Dev Multiplier
Controls the width of the bands:
Higher values widen the bands, filtering out minor fluctuations.
Lower values tighten the bands for more responsive analysis.
Set Fibonacci Levels
Define custom Fibonacci ratios (e.g., 0.236, 0.382) to plot intermediate levels between the bands.
█ Tips for Fine-Tuning
⚪ For Trend Trading:
Use higher Std Dev Multipliers to focus on long-term trends and avoid noise. Adjust Anchor Timeframe to Weekly or Monthly for broader trend analysis.
⚪ For Reversal Trading:
Tighten the bands with a lower Std Dev Multiplier.
Use shorter anchor timeframes for intraday reversals (e.g., Hourly).
⚪ For Volatile Markets:
Increase the Std Dev Multiplier to accommodate wider price swings.
⚪ For Quiet Markets:
Decrease the Std Dev Multiplier to highlight smaller fluctuations.
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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!
在脚本中搜索"bands"
[MAD] Custom Session VWAP BandsOverview
This indicator helps visualize the Volume Weighted Average Price (VWAP) and its associated standard deviation bands over specified time periods, providing traders with a clear understanding of price trends, volatility, and potential support/resistance levels.
Inputs
Deviation
StDev mult 1: Multiplier for the first standard deviation band (Default: 1.0)
StDev mult 2: Multiplier for the second standard deviation band (Default: 2.0)
StDev mult 3: Multiplier for the third standard deviation band (Default: 3.0)
StDev mult 4: Multiplier for the fourth standard deviation band (Default: 4.0)
Line width: Width of the lines for the bands (Default: 2)
Custom Vwap session reset settings
Many different options are considered when a session is going to be reset.
Plot and Fill Options
Enable Fills: Enable/disable filling between bands.
Plot +4: Enable/disable plotting the +4 standard deviation band.
Plot +3: Enable/disable plotting the +3 standard deviation band.
Plot +2: Enable/disable plotting the +2 standard deviation band.
Plot +1: Enable/disable plotting the +1 standard deviation band.
Plot VWAP: Enable/disable plotting the VWAP line.
Plot -1: Enable/disable plotting the -1 standard deviation band.
Plot -2: Enable/disable plotting the -2 standard deviation band.
Plot -3: Enable/disable plotting the -3 standard deviation band.
Plot -4: Enable/disable plotting the -4 standard deviation band.
How to Use the Indicator
Adding the Indicator
Add the indicator to your chart through your trading platform's indicator menu.
Configuring the VWAP Reset
Specify reset intervals based on time, days of the week, or specific dates.
Adjust the time zone if necessary.
Customizing Standard Deviation Bands
Set the multipliers for the standard deviation bands.
Choose line width for better visualization.
Enabling Plots and Fills
Select which bands to display.
Enable or disable fills between the bands.
Practical Application of VWAP Bands
Understanding VWAP
VWAP is a trading benchmark that calculates the average price a security has traded at throughout the day based on volume and price. It is primarily used for intraday trading but can also offer insights during end-of-day reviews.
Using VWAP for Trading
Intraday Trading
Entry and Exit Points: VWAP can help identify optimal buy and sell points. Buy when the price is above VWAP and sell when it's below.
Support and Resistance: VWAP often acts as a dynamic support/resistance level. Prices tend to revert to VWAP, making it a crucial level for intraday traders.
Trend Confirmation
Uptrends and Downtrends: In an uptrend, the price will generally stay above VWAP. Conversely, in a downtrend, it will stay below. Use this to confirm market direction.
Combining with Other Indicators
Moving Averages and Bollinger Bands: Combining VWAP with these indicators can provide a more robust trading signal, confirming trends and potential reversals.
Setting Stop-Loss and Profit Targets
Conservative Stop Orders: Place stop orders at recent lows for pullback trades.
Profit Targets: Use daily highs or Fibonacci extension levels to set profit targets.
Strategies for Using VWAP
Pullback Strategy
Buy during pullbacks to VWAP in an uptrend, and sell during rallies to VWAP in a downtrend.
Breakout Strategy
Look for breakouts above/below VWAP after the market open to capitalize on new trends.
Momentum Trading
Use VWAP to confirm the strength of a trend. Buy when the price is consistently above VWAP and sell when it's consistently below.
Institutional Strategies
Institutional traders use VWAP to execute large orders without causing significant market impact, ensuring trades are made around the average price.
By incorporating these strategies, traders can better understand market dynamics, make informed trading decisions, and manage their risk effectively.
Some setup possibilities
[Mad]Triple Bollinger Bands ForecastTriple Bollinger Bands Forecast (BBx3+F)
This open-source indicator is an advanced version of the classic Bollinger Bands, designed to provide a more comprehensive and forward-looking view of market volatility and potential price levels.
It plots three distinct sets of Bollinger Bands and projects them into the future based on statistical calculations.
How It Is Built and Key Features
Triple Bollinger Bands: Instead of a single set of bands, this indicator plots three. All three share the same central basis line (a Simple Moving Average), but each has a different standard deviation multiplier. This creates three distinct volatility zones for analyzing price deviation from its mean.
Multi-Timeframe (MTF) Capability: The indicator can calculate and display Bollinger Bands from a higher timeframe (e.g., showing daily bands on a 4-hour chart). This allows for contextualizing price action within the volatility structure of a more significant trend.
(Lower HTF selection will result in script-crash!)
Future Forecasting: This is the indicator's main feature. It projects the calculated Bollinger Bands up to 8 bars into the future. This forecast is a recalculation of the Simple Moving Average and Standard Deviation based on a projected future source price.
Selectable Forecast Methods: The mathematical model for estimating the future source price can be selected:
Flat: A model that uses the most recent closing price as the price for all future bars in the calculation window.
Linreg (Linear Regression): A model that calculates a linear regression trend on the last few bars and projects it forward to estimate the future source price.
Efficient Drawing with Polylines: The future projections are drawn on the chart using Pine Script's polyline object. This is an efficient method that draws the forecast data only on the last bar, which avoids repainting issues.
Differences from a Classical Bollinger Bands Indicator
Band Count: A classical indicator shows one set of bands. This indicator plots three sets for a multi-layered view of volatility.
Perspective: Classical Bollinger Bands are purely historical. This indicator is both historical and forward-looking .
Forecasting: The classic version has no forecasting capability. This indicator projects the bands into the future .
Timeframe: The classic version works only on the current timeframe. This indicator has full Multi-Timeframe (MTF) support .
The Mathematics Behind the Future Predictions
The core challenge in forecasting Bollinger Bands is that a future band value depends on future prices, which are unknown. This indicator solves this by simulating a future price series. Here is the step-by-step logic:
Forecast the Source Price for the Next Bar
First, the indicator estimates what the price will be on the next bar.
Flat Method: The forecasted price is the current bar's closing price.
Price_forecast = close
Linreg Method: A linear regression is calculated on the last few bars and extrapolated one step forward.
Price_forecast = ta.linreg(close, linreglen, 1)
Calculate the Future SMA (Basis)
To calculate the Simple Moving Average for the next bar, a new data window is simulated. This window includes the new forecasted price and drops the oldest historical price. For a 1-bar forecast, the calculation is:
SMA_future = (Price_forecast + close + close + ... + close ) / length
Calculate the Future Standard Deviation
Similarly, the standard deviation for the next bar is calculated over this same simulated window of prices, using the new SMA_future as its mean.
// 1. Calculate the sum of squared differences from the new mean
d_f = Price_forecast - SMA_future
d_0 = close - SMA_future
// ... and so on for the rest of the window's prices
SumOfSquares = (d_f)^2 + (d_0)^2 + ... + (d_length-2)^2
// 2. Calculate future variance and then the standard deviation
Var_future = SumOfSquares / length
StDev_future = sqrt(Var_future)
Extending the Forecast (2 to 8 Bars)
For forecasts further into the future (e.g., 2 bars), the script uses the same single Price_forecast for all future steps in the calculation. For a 2-bar forecast, the simulated window effectively contains the forecasted price twice, while dropping the two oldest historical prices. This provides a statistically-grounded projection of where the Bollinger Bands are likely to form.
Usage as a Forecast Extension
This indicator's functionality is designed to be modular. It can be used in conjunction with as example Mad Triple Bollinger Bands MTF script to separate the rendering of historical data from the forward-looking forecast.
Configuration for Combined Use:
Add both the Mad Triple Bollinger Bands MTF and this Triple Bollinger Bands Forecast indicator to your chart.
Open the Settings for this indicator (BBx3+F).
In the 'General Settings' tab, disable the Activate Plotting option.
To ensure data consistency, the Bollinger Length, Multipliers, and Higher Timeframe settings should be identical across both indicators.
This configuration prevents the rendering of duplicate historical bands. The Mad Triple Bollinger Bands MTF script will be responsible for visualizing the historical and current bands, while this script will overlay only the forward-projected polyline data.
RSI and Bollinger Bands Screener [deepakks444]Indicator Overview
The indicator is designed to help traders identify potential long signals by combining the Relative Strength Index (RSI) and Bollinger Bands across multiple timeframes. This combination allows traders to leverage the strengths of both indicators to make more informed trading decisions.
Understanding RSI
What is RSI?
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. Developed by J. Welles Wilder Jr. for stocks and forex trading, the RSI is primarily used to identify overbought or oversold conditions in an asset.
How RSI Works:
Calculation: The RSI is calculated using the average gains and losses over a specified period, typically 14 periods.
Range: The RSI oscillates between 0 and 100.
Interpretation:
Key Features of RSI:
Momentum Indicator: RSI helps identify the momentum of price movements.
Divergences: RSI can show divergences, where the price makes a higher high, but the RSI makes a lower high, indicating potential reversals.
Trend Identification: RSI can also help identify trends. In an uptrend, the RSI tends to stay above 50, and in a downtrend, it tends to stay below 50.
Understanding Bollinger Bands
What is Bollinger Bands?
Bollinger Bands are a type of trading band or envelope plotted two standard deviations (positively and negatively) away from a simple moving average (SMA) of a price. Developed by financial analyst John Bollinger, Bollinger Bands consist of three lines:
Upper Band: SMA + (Standard Deviation × Multiplier)
Middle Band (Basis): SMA
Lower Band: SMA - (Standard Deviation × Multiplier)
How Bollinger Bands Work:
Volatility Measure: Bollinger Bands measure the volatility of the market. When the bands are wide, it indicates high volatility, and when the bands are narrow, it indicates low volatility.
Price Movement: The price tends to revert to the mean (middle band) after touching the upper or lower bands.
Support and Resistance: The upper and lower bands can act as dynamic support and resistance levels.
Key Features of Bollinger Bands:
Volatility Indicator: Bollinger Bands help traders understand the volatility of the market.
Mean Reversion: Prices tend to revert to the mean (middle band) after touching the bands.
Squeeze: A Bollinger Band Squeeze occurs when the bands narrow significantly, indicating low volatility and a potential breakout.
Combining RSI and Bollinger Bands
Strategy Overview:
The strategy aims to identify potential long signals by combining RSI and Bollinger Bands across multiple timeframes. The key conditions are:
RSI Crossing Above 60: The RSI should cross above 60 on the 15-minute timeframe.
RSI Above 60 on Higher Timeframes: The RSI should already be above 60 on the hourly and daily timeframes.
Price Above 20MA or Walking on Upper Bollinger Band: The price should be above the 20-period moving average of the Bollinger Bands or walking on the upper Bollinger Band.
Strategy Details:
RSI Calculation:
Calculate the RSI for the 15-minute, 1-hour, and 1-day timeframes.
Check if the RSI crosses above 60 on the 15-minute timeframe.
Ensure the RSI is above 60 on the 1-hour and 1-day timeframes.
Bollinger Bands Calculation:
Calculate the Bollinger Bands using a 20-period moving average and 2 standard deviations.
Check if the price is above the 20-period moving average or walking on the upper Bollinger Band.
Entry and Exit Signals:
Long Signal: When all the above conditions are met, consider a long entry.
Exit: Exit the trade when the price crosses below the 20-period moving average or the stop-loss is hit.
Example Usage
Setup:
Add the indicator to your TradingView chart.
Configure the inputs as per your requirements.
Monitoring:
Look for the long signal on the chart.
Ensure that the RSI is above 60 on the 15-minute, 1-hour, and 1-day timeframes.
Check that the price is above the 20-period moving average or walking on the upper Bollinger Band.
Trading:
Enter a long position when the criteria are met.
Set a stop-loss below the low of the recent 15-minute candle or based on your risk management rules.
Monitor the trade and exit when the RSI returns below 60 on any of the timeframes or when the price crosses below the 20-period moving average.
House Rules Compliance
No Financial Advice: This strategy is for educational purposes only and should not be construed as financial advice.
Risk Management: Always use proper risk management techniques, including stop-loss orders and position sizing.
Past Performance: Past performance is not indicative of future results. Always conduct your own research and analysis.
TradingView Guidelines: Ensure that any shared scripts or strategies comply with TradingView's terms of service and community guidelines.
Conclusion
This strategy combines RSI and Bollinger Bands across multiple timeframes to identify potential long signals. By ensuring that the RSI is above 60 on higher timeframes and that the price is above the 20-period moving average or walking on the upper Bollinger Band, traders can make more informed decisions. Always remember to conduct thorough research and use proper risk management techniques.
Composite Z-Score with Linear Regression Bands [UAlgo]The Composite Z-Score with Linear Regression Bands is a technical indicator designed to provide traders with a comprehensive analysis of price momentum, volatility, and volume. By combining multiple moving averages with slope analysis, volume/volatility compression-expansion metrics, and Z-Score calculations, this indicator aims to highlight potential breakout and breakdown points with high accuracy. The inclusion of linear regression bands further enhances the analysis by providing dynamic support and resistance levels, which adapt to market conditions. This makes the indicator particularly useful in identifying overbought/oversold conditions, volume squeezes, and the overall direction of the trend.
🔶 Key Features
Multi-Length Slope Calculation: The indicator uses multiple Hull Moving Averages (HMA) across various lengths to calculate slope angles, which are then converted into Z-Scores. This helps in capturing both short-term and long-term price momentum.
Volume/Volatility Composite Analysis: By calculating a composite value derived from both volume and volatility, the indicator identifies periods of compression (squeezes) and expansion, which are crucial for detecting potential breakout opportunities.
Linear Regression Bands: The inclusion of dynamic linear regression bands provides traders with adaptive support and resistance levels. These bands are enhanced by the composite value, which adjusts the band width based on market conditions, offering a clearer view of possible price reversals.
Overbought/Oversold Detection: The indicator highlights overbought and oversold conditions by comparing Z-Scores against the upper and lower bounds of the regression bands, which can signal potential reversal points.
Customizable Inputs: Users can customize key parameters such as the lengths of the moving averages, the regression band period, and the number of deviations used for the bands, allowing for flexibility in adapting the indicator to different market environments.
🔶 Interpreting the Indicator
Z-Score Plots: The individual Z-Score plots represent the normalized slope of the Hull Moving Averages over different periods. Positive values indicate upward momentum, while negative values suggest downward momentum. The combined Z-Sum provides a broader view of the overall market momentum.
Composite Value: The composite value is a ratio of volume to volatility, which highlights periods of market compression and expansion. When the composite value rises, it suggests increasing market activity, often preceding a breakout.
Why are we calculating values for multiple lengths?
The Composite Z-Score with Linear Regression Bands indicator employs a multi-timeframe analysis by calculating Z-scores for various moving average lengths. This approach provides a more comprehensive view of market dynamics and helps to identify trends and potential reversals across different timeframes. By considering multiple lengths, we can:
Capture a broader range of market behaviors: Different moving average lengths capture different aspects of price movement. Shorter lengths are more sensitive to recent price changes, while longer lengths provide a smoother representation of the underlying trend.
Reduce the impact of noise: By combining Z-scores from multiple lengths, we can help to filter out some of the noise that can be present in shorter-term data and obtain a more robust signal.
Enhance the reliability of signals: When Z-scores from multiple lengths align, it can increase the confidence in the identified trend or potential reversal. This can help to reduce the likelihood of false signals.
In essence, calculating values for multiple lengths allows the indicator to provide a more nuanced and reliable assessment of market conditions, making it a valuable tool for traders and analysts.
Linear Regression Bands: The central line represents the linear regression of the Z-Sum, while the upper and lower bands represent the dynamic resistance and support levels, respectively. The deviation from the regression line indicates the strength of the current trend. When price moves beyond these bands, it may signal an overbought (above upper band) or oversold (below lower band) condition.
Volume/Volatility Squeeze: When the price moves between the regression bands and the volume/volatility-adjusted bands, the market is in a squeeze. Breakouts from this squeeze can lead to significant price moves, which are indicated by the filling of areas between the Z-Score plots and the bands.
Color Interpretation: The indicator uses color changes to make it easier to interpret the data. Teal colors generally indicate upward momentum or strong conditions, while red suggests downward momentum or weakening conditions. The intensity of the color reflects the strength of the signal.
Overbought/Oversold Signals: The indicator marks potential overbought and oversold conditions when Z-Scores cross above or below the upper and lower regression bands, respectively. These signals are crucial for identifying potential reversal points in the market.
🔶 Disclaimer
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Bollinger RSI BandsIndicator Description:
The "Bollinger RSI Bands" is an advanced technical analysis tool designed to empower traders with comprehensive insights into market trends, reversals, and overbought/oversold conditions. This multifaceted indicator combines the unique features of candle coloration and Bollinger Bands with the Relative Strength Index (RSI), making it an indispensable tool for traders seeking to optimize their trading strategies.
Purpose:
The primary purpose of the "Bollinger RSI Bands" indicator is to provide traders with a holistic view of market dynamics by offering the following key functionalities:
Candle Coloration: The indicator's signature candle colors - green for bullish and red for bearish - serve as a visual representation of the prevailing market trend, enabling traders to quickly identify and confirm market direction.
RSI-Based Moving Average: A smoothed RSI-based moving average is plotted, facilitating the detection of trend changes and potential reversal points with greater clarity.
RSI Bands: Upper and lower RSI bands, set at 70 and 30, respectively, help traders pinpoint overbought and oversold conditions, aiding in timely entry and exit decisions.
Bollinger Bands: In addition to RSI bands, Bollinger Bands are overlaid on the RSI-based moving average, offering insights into price volatility and highlighting potential breakout opportunities.
How to Use:
To maximize the utility of the "Bollinger RSI Bands" indicator, traders can follow these essential steps:
Candle Color Confirmation: Assess the color of the candles. Green candles signify a bullish trend, while red candles indicate a bearish trend, providing a clear and intuitive visual confirmation of market direction.
Overbought and Oversold Identification: Monitor price levels relative to the upper RSI band (70) for potential overbought signals and below the lower RSI band (30) for potential oversold signals, allowing for timely adjustments to trading positions.
Trend Reversal Recognition: Observe changes in the direction of the RSI-based moving average. A transition from bearish to bullish, or vice versa, can serve as a valuable signal for potential trend reversals.
Volatility and Breakout Opportunities: Keep a watchful eye on the Bollinger Bands. Expanding bands signify increased price volatility, often signaling forthcoming breakout opportunities.
Why Use It:
The "Bollinger RSI Bands" indicator offers traders several compelling reasons to incorporate it into their trading strategies:
Clear Trend Confirmation: The indicator's distinct candle colors provide traders with immediate confirmation of the current trend direction, simplifying trend-following strategies.
Precise Entry and Exit Points: By identifying overbought and oversold conditions, traders can make more precise entries and exits, optimizing their risk-reward ratios.
Timely Trend Reversal Signals: Recognizing shifts in the RSI-based moving average direction allows traders to anticipate potential trend reversals and adapt their strategies accordingly.
Volatility Insights: Bollinger Bands offer valuable insights into price volatility, aiding in the identification of potential breakout opportunities.
User-Friendly and Versatile: Despite its advanced features, the indicator remains user-friendly and versatile, catering to traders of all experience levels.
In summary, the "Bollinger RSI Bands" indicator is an indispensable tool for traders seeking a comprehensive view of market dynamics. With its unique combination of candle coloration and Bollinger Bands, it empowers traders to make more informed and strategic trading decisions, ultimately enhancing their trading outcomes.
Note: Always utilize this indicator in conjunction with other technical and fundamental analysis tools and exercise prudence in your trading decisions. Past performance is not indicative of future results.
Bollinger Bands (Bad Ass B-Bands) - Wyckoff ModeHi Everyone! It's time to make this indicator public reduce the load off of me for others requesting access... This particular version of Bad Ass B-Bands has a minor change in the default settings to reduce the thickness of the B-Bands to number 1 thickness instead of a default to number 2 thickness. Feel free to adjust the colors to your personal preference to work well with the background color of your choosing.
DEFAULT INPUTS:
The Standard Deviation for White Upper B-Band = Positive 1.0
The Standard Deviation for White Lower B-Band = Negative 1.0
The Standard Deviation for Aqua Upper B-Band = Positive 1.618
The Standard Deviation for Aqua Upper B-Band = Negative 1.618
The Standard Deviation for Orange Upper B-Band = Positive 2.618
The Standard Deviation for Orange Upper B-Band = Negative 2.618
The Standard Deviation for Red Upper B-Band = Positive 3.618
The Standard Deviation for Red Upper B-Band = Negative 3.618
The Yellow B-Band BASIS is setup for 20-Moving Average
It's EXTREMELY IMPORTANT to use this indicator with my Phoenix Ascending 2.201 indicator to get a better indication of where the price action can run up to or down to in most any time frame.
BASIC RULES BELOW: Be advised these rules are ONLY BASIC... More detailed rules will be made available in the future.
If the Red RSI inside Phoenix Ascending indicator goes above level 50, there's a chance for price action to run up to the Aqua/Orange UPPER B-Bands.
If the Blue LSMA inside the Phoenix Ascending indicator goes above level 50, there's a chance for the B-Bands to expand and the body of each candle to remain inside the Aqua/Orange UPPER B-Bands until the B-Bands begin to flatten and/or contract.
If the Red RSI inside the Phoenix Ascending indicator goes below level 50, there's a CHANCE for the price action to fall down to the Aqua/Orange LOWER B-Bands.
If the Blue LSMA inside the phoenix Ascending indicator goes below level 50, there's a CHANCE for the B-Bands to expand and the body of each candle to remain inside the Aqua/Orange LOWER B-Bands until the B-Bands begin to flatten and/or contract.
If the Green Line falls down to level 50 inside the Phoenix Ascending Indicator, there's a CHANCE for the price action to fall to the Yellow B-Band Basis.
If the Green Line runs up to level 50 inside the Phoenix Ascending Indicator, there's a CHANCE for the price action to run up to the Yellow B-Band Basis.
REMINDER: The rules above are ONLY "BASIC" RULES. Additional rules will be available in the future.
Happy Trading and Stay Awesome!
David
SETUP VIDEO FOR PHOENIX ASCENDING 2.201 and BOLLINGER BANDS:
SAP121212 — Close vs VWAP + Optional RSI (Signals)This indicator combines Supertrend, VWAP with bands, and an optional RSI filter to generate Buy/Sell signals.
How it works
Supertrend Flip (ATR-based): Detects when trend direction changes (from bearish to bullish, or bullish to bearish).
VWAP Band Filter: Signals only trigger if the candle close is beyond the VWAP bands:
Buy = Supertrend flips up AND close > VWAP Upper Band
Sell = Supertrend flips down AND close < VWAP Lower Band
Optional RSI Filter:
Buy requires RSI < 20
Sell requires RSI > 80
Can be enabled/disabled in settings.
Features
Choice of VWAP band calculation mode: Standard Deviation or ATR.
Adjustable ATR/StDev length and multiplier for VWAP bands.
Toggle Supertrend, VWAP lines, and Buy/Sell labels.
Alerts included: add alerts on BUY or SELL conditions (use Once Per Bar Close to avoid intrabar signals).
Use
Works best on intraday or higher timeframes where VWAP is relevant.
Use the RSI filter for more selective signals.
Can be combined with your own stop-loss and risk management rules.
⚠️ Disclaimer: This script is for educational and research purposes only. It is not financial advice. Always test thoroughly and trade at your own risk.
SD Bands Filtered Signals### SD Bands Filtered Signals: Reversion & Volatility Scanner
**Core Description:**
The SD Bands Filtered Signals is a tool developed to help traders identify more accurate buy and sell signals in sideways markets, or during periods of low price movement. It utilizes the principles of Standard Deviation (SD) and a Moving Average (MA), with a unique 'signal filtering' system added to reduce unnecessary noise.
**Key Features:**
* **SD Bands:** Creates upper and lower bands to define price volatility zones, providing a clear overview of market conditions.
* **Intelligent Reversal Signals:** Generates specially filtered Buy/Sell signals for a 'Reversion to the Mean' strategy. These signals appear only when the market has low volatility and the price touches the SD Bands.
* **Advanced Signal Filtering System:** Uses a **`Cooldown Bars`** variable to set a rest period between signals. This prevents repetitive arrows in the same zone, helping you find the best signal at the most suitable point.
* **Fully Customizable:** You can adjust the **`Length`**, **`Multiplier`**, **`Sideways Threshold`**, and **`Cooldown Bars`** to fit your trading style and asset of choice.
**How to Use:**
* **Buy Signal (Green Arrow Up):** Look for this signal when the market is sideways and the price moves down to touch the lower band (SD Low).
* **Sell Signal (Red Arrow Down):** Look for this signal when the market is sideways and the price moves up to touch the upper band (SD High).
* **Customization:** You can adjust the **`Cooldown Bars`** value to control the number of arrows. If you want more accurate but fewer signals, increase this value.
**Disclaimer:**
* This indicator is an **analytical tool only** and is not a 100% guarantee of profit.
* It should be used in conjunction with other forms of analysis, such as candlestick patterns, trading volume, and proper risk management.
ไทย
ชื่ออินดิเคเตอร์ "SD Bands Filtered Signals: Reversion & Volatility Scanner"
คำอธิบายหลัก:
อินดิเคเตอร์ SD Bands Filtered Signals เป็นเครื่องมือที่ถูกพัฒนาขึ้นเพื่อช่วยให้นักเทรดสามารถระบุสัญญาณซื้อ (Buy) และขาย (Sell) ที่แม่นยำขึ้นในตลาดแบบ Sideways หรือช่วงที่ราคาเคลื่อนที่ในกรอบแคบๆ โดยใช้หลักการของ Standard Deviation (SD) และ Moving Average (MA) และเพิ่มระบบ 'กรองสัญญาณ' ที่เป็นเอกลักษณ์เพื่อลดสัญญาณรบกวน (Noise) ที่ไม่จำเป็นออกไป
คุณสมบัติเด่น:
* SD Bands: สร้างเส้นขอบบนและล่างเพื่อระบุโซนความผันผวนของราคา ทำให้เห็นภาพรวมของตลาดได้ง่าย
* สัญญาณ Reversal อัจฉริยะ: สร้างสัญญาณ Buy/Sell ที่ถูกคัดกรองมาเป็นพิเศษสำหรับกลยุทธ์การกลับตัว (Reversion to the Mean) โดยจะปรากฏเฉพาะเมื่อตลาดมีความผันผวนต่ำและราคาแตะขอบของ SD Bands
* ระบบกรองสัญญาณขั้นสูง: ใช้ตัวแปร Cooldown Bars เพื่อกำหนดระยะเวลาพักสัญญาณ ทำให้ไม่เกิดลูกศรซ้ำๆ ในโซนเดียวกัน และช่วยให้คุณได้สัญญาณที่ดีที่สุดในจุดที่เหมาะสมที่สุด
* ปรับแต่งได้เต็มที่: คุณสามารถปรับค่า Length, Multiplier, Sideways Threshold และ Cooldown Bars เพื่อให้เข้ากับสไตล์การเทรดและคู่สินทรัพย์ที่คุณสนใจ
วิธีการใช้งาน:
* สัญญาณ Buy (ลูกศรสีเขียวขึ้น): มองหาสัญญาณนี้เมื่อตลาดอยู่ในช่วง Sideways และราคาวิ่งลงมาแตะเส้นขอบล่าง (SD Low)
* สัญญาณ Sell (ลูกศรสีแดงลง): มองหาสัญญาณนี้เมื่อตลาดอยู่ในช่วง Sideways และราคาวิ่งขึ้นไปแตะเส้นขอบบน (SD High)
* การปรับแต่ง: คุณสามารถปรับค่า Cooldown Bars เพื่อให้ได้จำนวนลูกศรที่ต้องการ หากต้องการสัญญาณที่แม่นยำขึ้นแต่จำนวนน้อยลง ให้เพิ่มค่านี้ให้สูงขึ้น
ข้อควรระวัง:
* อินดิเคเตอร์นี้เป็นเพียงเครื่องมือวิเคราะห์ ไม่ใช่สัญญาณที่การันตีผลกำไร 100%
* ควรใช้ประกอบกับการวิเคราะห์อื่นๆ เช่น รูปแบบแท่งเทียน, ปริมาณการซื้อขาย (Volume) และการจัดการความเสี่ยงที่เหมาะสม
AE - ATR Exhaustion ChannelAE - ATR Exhaustion Channel
📈 Overview
Identify Exhaustion Zones & Trend Breakouts with ATR Precision!
The AE - ATR Exhaustion Channel is a powerful volatility-based trading tool that combines an averaged SMA with ATR bands to dynamically highlight potential trend exhaustion zones. It provides real-time breakout detection by marking when price moves beyond key volatility bands, helping traders spot overextensions and reversals with ease.
🔑 Key Features
✔️ ATR-SMA Hybrid Channel: Uses an averaged SMA as the core trend filter while incorporating adaptive ATR-based bands for precise volatility tracking.
✔️ Dynamic Exhaustion Markers: Marks red crosses when price exceeds the upper band and green crosses when price drops below the lower band.
✔️ Customizable ATR Sensitivity: Adjust the ATR multiplier and length settings to fine-tune band sensitivity based on market conditions.
✔️ Clear Channel Visualization: A gray SMA midpoint and a blue-filled ATR band zone make it easy to track market structure.
📚 How It Works
1️⃣ Averaged SMA Calculation: The script calculates an averaged SMA over a user-defined range (min/max period). This smooths out short-term fluctuations while preserving trend direction.
2️⃣ ATR Band Construction: The ATR value (adjusted by a multiplier) is added to/subtracted from the SMA to form dynamic upper and lower volatility bands.
3️⃣ Exhaustion Detection:
If high > upper ATR band, a red cross is plotted (potential overextension).
If low < lower ATR band, a green cross is plotted (potential reversal zone).
4️⃣ Filled ATR Channel: The area between the upper and lower bands is shaded blue, providing a visual trading range.
🎨 Customization & Settings
⚙️ ATR Length – Adjusts the ATR calculation period (default: 14).
⚙️ ATR Multiplier – Scales the ATR bands for tighter or wider volatility tracking (default: 0.8, adjustable in 0.1 steps).
⚙️ SMA Range (Min/Max Length) – Defines the period range for calculating the averaged SMA (default: 5-20).
⚙️ Rolling Lookback Length – Controls how far back the high/low comparison is calculated (default: 50 bars).
🚀 Practical Usage
📌 Spotting Exhaustion Zones – Look for red/green markers appearing outside the ATR bands, signaling potential trend exhaustion and possible reversal opportunities.
📌 Breakout Confirmation – Price consistently breaching the upper band with momentum could indicate continuation, while repeated touches without strong closes may hint at reversal zones.
📌 Trend Reversal Signals – Watch for green markers below the lower band in uptrends (buy signals) and red markers above the upper band in downtrends (sell signals).
🔔 Alerts & Notifications
📢 Set Alerts for Exhaustion Signals!
Traders can configure alerts to trigger when price breaches the ATR bands, allowing for instant notifications when volatility-based exhaustion is detected.
📊 Example Scenarios
✔ Trend Exhaustion in Overextended Moves – A series of red crosses near resistance may indicate a short opportunity.
✔ Trend Exhaustion in Overextended Moves – A series of red crosses near resistance may indicate an opportunity to open a short trade.
✔ Volatility Compression Breakouts – If price consolidates within the ATR bands and suddenly breaks out, it could signify a momentum shift.
✔ Reversal Catching in Trending Markets – Spot potential trend reversals by looking for green markers below the ATR bands in bullish markets.
🌟 Why Choose AE - ATR Exhaustion Channel?
Trade with Confidence. Spot Volatility. Catch Breakouts.
The AE - ATR Exhaustion Channel is an essential tool for traders looking to identify trend exhaustion, detect breakouts, and manage volatility effectively. Whether you're trading stocks, crypto, or forex, this ATR-SMA hybrid system provides clear visual cues to help you stay ahead of market moves.
✅ Customizable to Fit Any Market
✅ Combines Volatility & Trend Analysis
✅ Easy-to-Use with Instant Breakout Detection
Kalman PredictorThe **Kalman Predictor** indicator is a powerful tool designed for traders looking to enhance their market analysis by smoothing price data and projecting future price movements. This script implements a Kalman filter, a statistical method for noise reduction, to dynamically estimate price trends and velocity. Combined with ATR-based confidence bands, it provides actionable insights into potential price movement, while offering clear trend and momentum visualization.
---
#### **Key Features**:
1. **Kalman Filter Smoothing**:
- Dynamically estimates the current price state and velocity to filter out market noise.
- Projects three future price levels (`Next Bar`, `Next +2`, `Next +3`) based on velocity.
2. **Dynamic Confidence Bands**:
- Confidence bands are calculated using ATR (Average True Range) to reflect market volatility.
- Visualizes potential price deviation from projected levels.
3. **Trend Visualization**:
- Color-coded prediction dots:
- **Green**: Indicates an upward trend (positive velocity).
- **Red**: Indicates a downward trend (negative velocity).
- Dynamically updated label displaying the current trend and velocity value.
4. **User Customization**:
- Inputs to adjust the process and measurement noise for the Kalman filter (`q` and `r`).
- Configurable ATR multiplier for confidence bands.
- Toggleable trend label with adjustable positioning.
---
#### **How It Works**:
1. **Kalman Filter Core**:
- The Kalman filter continuously updates the estimated price state and velocity based on real-time price changes.
- Projections are based on the current price trend (velocity) and extend into the future (Next Bar, +2, +3).
2. **Confidence Bands**:
- Calculated using ATR to provide a dynamic range around the projected future prices.
- Indicates potential volatility and helps traders assess risk-reward scenarios.
3. **Trend Label**:
- Updates dynamically on the last bar to show:
- Current trend direction (Up/Down).
- Velocity value, providing insight into the expected magnitude of the price movement.
---
#### **How to Use**:
- **Trend Analysis**:
- Observe the direction and spacing of the prediction dots relative to current candles.
- Larger spacing indicates a potential strong move, while clustering suggests consolidation.
- **Risk Management**:
- Use the confidence bands to gauge potential price volatility and set stop-loss or take-profit levels accordingly.
- **Pullback Detection**:
- Look for flattening or clustering of dots during trends as a signal of potential pullbacks or reversals.
---
#### **Customizable Inputs**:
- **Kalman Filter Parameters**:
- `lookback`: Adjusts the smoothing window.
- `q`: Process noise (higher values make the filter more reactive to changes).
- `r`: Measurement noise (controls sensitivity to price deviations).
- **Confidence Bands**:
- `band_multiplier`: Multiplies ATR to define the range of confidence bands.
- **Visualization**:
- `show_label`: Option to toggle the trend label.
- `label_offset`: Adjusts the label’s distance from the price for better visibility.
---
#### **Examples of Use**:
- **Scalping**: Use on lower timeframes (e.g., 1-minute, 5-minute) to detect short-term price trends and reversals.
- **Swing Trading**: Identify pullbacks or continuations on higher timeframes (e.g., 4-hour, daily) by observing the prediction dots and confidence bands.
- **Risk Assessment**: Confidence bands help visualize potential price volatility, aiding in the placement of stops and targets.
---
#### **Notes for Traders**:
- The **Kalman Predictor** does not predict the future with certainty but provides a statistically informed estimate of price movement.
- Confidence bands are based on historical volatility and should be used as guidelines, not guarantees.
- Always combine this tool with other analysis techniques for optimal results.
---
This script is open-source, and the Kalman filter logic has been implemented uniquely to integrate noise reduction with dynamic confidence band visualization. If you find this indicator useful, feel free to share your feedback and experiences!
---
#### **Credits**:
This script was developed leveraging the statistical principles of Kalman filtering and is entirely original. It incorporates ATR for dynamic confidence band calculations to enhance trader usability and market adaptability.
%MAThis indicator is designed to plot a Simple Moving Average (SMA) along with customizable upper and lower bands (% up/down) on a TradingView chart. Here's a brief but thorough explanation of its functionality:
TL;DR: This script shows percentages above and below customizable moving average timeframes & legnths. It's unique in the sense that it isn't on a separate pane & gives visual clarity against the price in real time HLOC.
1. Main SMA Plot
The script calculates a Simple Moving Average (SMA) based on user-defined inputs:
Timeframe: E.g., daily ("Daily") by default.
Length: E.g., 50 periods by default.
Color: Customizable by the user.
This SMA acts as the central reference line and can be toggled on or off using a "Show" option.
2. Upper and Lower Bands
The script generates two upper bands and two lower bands around the main SMA.
Each band is derived from an SMA (calculated similarly to the main SMA) and offset by a percentage:
Upper Bands: SMA × (1 + distance percentage / 100), e.g., SMA × 1.05 for a 5% offset.
Lower Bands: SMA × (1 - distance percentage / 100), e.g., SMA × 0.95 for a 5% offset.
These bands can indicate potential support, resistance, or volatility ranges.
3. Customization
Users can independently configure:
Visibility: Toggle each band and the main SMA on or off.
Timeframe: Set the timeframe for each SMA calculation.
Length: Define the SMA period.
Distance Percentage: Adjust the offset for each band.
Color: Choose colors for all plotted lines.
This flexibility allows tailored analysis for different trading strategies or timeframes.
4. Plotting
The main SMA and each band are plotted using TradingView’s plot function, but only if their respective "Show" options are enabled.
Lines are displayed with user-specified colors and styles (e.g., the main SMA has a linewidth of 2).
Purpose
This script provides a versatile tool for technical analysis, enabling traders to visualize an SMA with percentage-based bands to identify key price levels or ranges, such as support/resistance, volatility zones, and trends, with extensive customization options.
QuantumBands - Tutor Metatrader🚀 QuantumBands - Tutor Metatrader 🚀
📖 Description:
QuantumBands is a powerful technical indicator designed to enhance your trading analysis. It combines the popular Bollinger Bands with a unique twist, providing you with valuable insights into market dynamics. This indicator is presented by the Tutor Metatrader channel, offering expert guidance and education on using the indicator effectively.
🔍 How it Works:
QuantumBands calculates the Bollinger Bands based on a defined period and multiplier. The indicator plots the middle band (basis), the upper band, and the lower band on your chart, visualizing potential price volatility and areas of support and resistance. Additionally, it generates buy and sell signals when the price crosses the bands, helping you identify potential entry and exit points in your trading strategy.
🎯 Key Features:
- Customizable period and multiplier for the Bollinger Bands.
- Clear visual representation of the bands for easy analysis.
- Buy and sell signals for potential trading opportunities.
- Backed by the expertise of Tutor Metatrader channel.
📚 How to Use:
1. Set the desired period and multiplier for the Bollinger Bands.
2. Look for price action near the bands and monitor for potential reversals or breakouts.
3. Pay attention to buy and sell signals generated when the price crosses the bands.
4. Consider additional factors and perform proper risk management before executing trades.
⚠️ Disclaimer: Trading involves risk, and this indicator should be used as a tool to support your analysis. Always perform your due diligence and combine the indicator with other technical and fundamental analysis methods.
🌟 Enjoy using QuantumBands for your trading analysis, and remember to check out the Tutor Metatrader channel for expert guidance and educational content!
💡 Share your feedback and trading experiences with QuantumBands - Tutor Metatrader in the comments below. Happy trading!
Multiplied and Divided Moving Average ### Multiplied and Divided Moving Average Indicator
**Description**:
The "Multiplied and Divided Moving Average" indicator is a customizable tool for TradingView users, designed to create dynamic bands around a user-selected moving average (MA). It calculates a moving average (SMA, EMA, WMA, VWMA, or RMA) and generates a user-defined number of lines above and below it by multiplying and dividing the MA by linearly spaced factors. These bands serve as potential support and resistance levels, aiding in trend identification, mean reversion strategies, or breakout detection. Optional Buy/Sell labels appear when the price crosses below the divided MAs (Buy) or above the multiplied MAs (Sell), providing clear visual cues for trading opportunities.
**Key Features**:
- **Flexible MA Types**: Choose from Simple (SMA), Exponential (EMA), Weighted (WMA), Volume-Weighted (VWMA), or Running (RMA) moving averages.
- **Customizable Bands**: Set the number of lines (0–10) above and below the MA, allowing tailored analysis for any market or timeframe.
- **Dynamic Factors**: Bands are created using factors that scale linearly from 1 to a user-defined maximum (default: 5.0), creating intuitive overbought/oversold zones.
- **Buy/Sell Signals**: Optional labels highlight potential entry (Buy) and exit (Sell) points when the price crosses the bands.
- **Clear Visuals**: The main MA is plotted in blue, with green (multiplied) and red (divided) lines using graduated transparency for easy differentiation.
**Inputs**:
- **MA Type**: Select the moving average type (default: SMA).
- **MA Length**: Set the MA period (default: 14).
- **Number of Lines Above/Below**: Choose how many bands to plot above and below the MA (default: 4, range: 0–10).
- **Max Factor**: Define the largest multiplier/divisor for the outermost bands (default: 5.0).
- **Source**: Select the price data for the MA (default: close).
- **Show Buy/Sell Labels**: Enable or disable Buy/Sell labels (default: true).
**How It Works**:
1. Calculates the chosen moving average based on user inputs.
2. Creates up to 10 lines above the MA (e.g., MA × 2, ×3, ×4, ×5 for `numLines=4`, `maxFactor=5`) and 10 below (e.g., MA ÷ 2, ÷3, ÷4, ÷5).
3. Plots the main MA in blue, multiplied lines in green, and divided lines in red, with transparency increasing for outer bands.
4. If enabled, displays "Buy" labels when the price crosses below any divided MA and "Sell" labels when it crosses above any multiplied MA, positioned at the outermost band.
**Use Cases**:
- **Trend Analysis**: Use the bands as dynamic support/resistance to confirm trend direction or reversals.
- **Mean Reversion**: Identify overbought (near multiplied MAs) or oversold (near divided MAs) conditions.
- **Breakout Trading**: Monitor price crossovers of the outermost bands for potential breakout signals.
- **Signal Confirmation**: Use Buy/Sell labels for swing trading or to complement other indicators.
**How to Use**:
1. Copy the script into TradingView’s Pine Editor.
2. Compile and apply it to your chart (e.g., stocks, forex, crypto).
3. Adjust inputs like `numLines`, `maxFactor`, or `maType` to fit your strategy.
4. Enable `Show Buy/Sell Labels` to visualize trading signals.
5. Test on various timeframes (e.g., 1H, 4H, 1D) and assets to optimize settings.
**Example Settings**:
- **Swing Trading**: Use `numLines=3`, `maxFactor=4`, `maType=EMA`, `maLength=20` on a 4-hour chart.
- **Intraday**: Try `numLines=2`, `maxFactor=3`, `maType=SMA`, `maLength=10` on a 15-minute chart.
**Notes**:
- **Performance**: Supports up to 20 bands (10 above, 10 below), staying within TradingView’s 64-plot limit.
- **False Signals**: In choppy markets, frequent crossovers may occur. Combine with trend filters (e.g., ADX, higher-timeframe MA) to reduce noise.
- **Enhancements**: Add alerts via TradingView’s alert system for Buy/Sell signals, or experiment with different `maxFactor` values for volatility.
**Limitations**:
- Bands are reactive, as they’re based on a moving average, so confirm signals with other indicators.
- High `numLines` values may clutter the chart; use 2–4 for clarity.
- Signals may lag in fast-moving markets due to the MA’s smoothing effect.
This indicator is perfect for traders seeking a customizable, visually clear tool to enhance technical analysis on TradingView. For support, feature requests (e.g., alerts, custom colors), or community discussion, visit TradingView’s forums or contact the script author.
EMA GridThe EMA Grid indicator is a powerful tool that calculates the overall market sentiment by comparing the order of 20 different Exponential Moving Averages (EMAs) over various lengths. The indicator assigns a rating based on how well-ordered the EMAs are relative to each other, representing the strength and direction of the market trend. It also smooths out the macro movements using cumulative calculations and visually represents the market sentiment through color-coded bands.
EMA Calculation:
The indicator uses a series of EMAs with different lengths, starting from 5 and going up to 100. Each EMA is calculated either using the exponential moving averages.
The EMAs form the grid that the indicator uses to measure the order and distance between them.
Rating Calculation:
The indicator computes the relative distance between consecutive EMAs and sums these differences.
The cumulative sum is further smoothed using multiple EMAs with different lengths (from 3 to 21). This smooths out short-term fluctuations and helps identify broader trends.
Market Sentiment Rating:
The overall sentiment is calculated by comparing the values of these smoothing EMAs. If the shorter-term EMA is above the longer-term EMA, it contributes positively to the sentiment; otherwise, it contributes negatively.
The final rating is a normalized value based on the relationship between these EMAs, producing a sentiment score between 1 (bullish) and -1 (bearish).
Color Coding and Bands:
The indicator uses the sentiment rating to color the space between the 100 EMA and 200 EMA, representing the strength of the trend.
If the sentiment is bullish (rating > 0), the band is shaded green. If the sentiment is bearish (rating < 0), the band is shaded red.
The intensity of the color is based on the strength of the sentiment, with stronger trends resulting in more saturated colors.
Utility for Traders:
The EMA Grid is ideal for traders looking to gauge the broader market trend by analyzing the structure and alignment of multiple EMAs. The color-coded band between the 100 and 200 EMAs provides an at-a-glance view of market momentum, helping traders make informed decisions based on the trend's strength and direction.
This indicator can be used to identify bullish or bearish conditions and offers a smoothed perspective on market trends, reducing noise and highlighting significant trend shifts.
Volume Adaptive Bollinger Bands (MZ VABB)This indicator is a functional enhancement to John Bollinger's Bollinger Bands. I've used Volume to adapt dynamic length which is used in basis (middle line) of Bollinger Bands and Simple Moving Average is replaced with Adaptive Ehlers Deviation Scaled Moving Average ( AEDSMA ).
BOLLINGER BANDS BASIC USAGE AND LIMITATIONS
Bollinger bands are popular among traders because of their simple way to detect volatility in market and redefine support and resistance accordingly. These are some basic usages of original Bollinger Bands:
Most commonly Bollinger Band works on 20 period Simple Moving Average as Basis / Middle Line and standard deviation of 2 for volatility detection.
Upper and lower bands can act as support and resistance which accordingly update with standard deviation of same period as of Simple Moving Average.
As upper and lower bands act as volatility measure which benefits in Squeeze detection and breakout trading.
Among all the usages there are some limitations as follows:
Original Bollinger Bands use 20 period Simple Moving Average as Basis which itself restricted to some number of data pints and if market moves in one direction or simply goes sideways for long time; candles can stay on either bands for long time. This gives benefit for staying in directional trade but will completely nullify the use of both bands as support and resistance.
Above point simply be explained as markets can stay overbought / oversold for long time and one way to make Bollinger Bands more useful is to simply use higher periods in SMA but as we know with higher periods SMA becomes more laggy and less adaptive.
Most traders use BBs alongside some other Volume Oscillator for example "On Balance Volume" but that does solve BBs limitations issue that it should be more adaptive to detect volatility in market.
VOLUME ADAPTIVE BOLLINGER BAND WORKING PRINCIPLE
Best way to make original Bollinger band more adaptive was to just use dynamic length instead on constant 20 period. This dynamic length had to be based on some other powerful parameter which can't be volatility as BB itself is a volatility indicator and adapting its length based volatility would have been superimposing volatility on Bollinger bands giving unrealistic results.
For adaptive length, I tried using Volume and for this purpose I used my Relative Volume Strength Index " RVSI " indicator. RVSI is the best way to detect if Volume is going for a breakout or not and based on that indication length of Bollinger Band Basis Moving Average changes.
RVSI breaking above provided value would indicate Volume breakout and hence dynamic length would accordingly make Bollinger band basis moving average more over fitted and similarly standard deviation of achieved dynamic length would give better bands for support and resistance. Similar case would happen if Volume goes down and dynamic length becomes more underfit.
According to my back testing studies I found that Simple Moving Average wasn't the best choice for dynamic length usage in Bollinger Band Basis. So, I used Adaptive Ehlers Deviation Scaled Moving Average ( AEDSMA ) which is more adaptive and already modified to adapt with RVSI.
SLOPE USAGE FOR TREND STRENGTH DETCTION
Volume Adaptive Bollinger Bands are more reactive to market trends so, I used slope for trend strength detection.
If slope of Volume Adaptive Bollinger Band Basis (i.e. AEDSMA ), Upper and Lower Bands is supporting a trend at same time then script will provide signal in that direction. That signal can also use Volume as confirmation if Bollinger Bands trend direction is supported by Volume or not.
DYNAMIC COLORS AND TREND CORRELATION
I’ve used dynamic coloring in Basis ( AEDSMA ) to identify trends with more detail which are as follows:
Lime Color: Slope supported Strong Uptrend also supported by Volume and Volatility or whatever you’ve chosen from both of them.
Fuchsia Color: Weak uptrend only supported by Slope or whatever you’ve selected.
Red Color: Slope supported Strong Downtrend also supported by Volume and Volatility or whatever you’ve chosen from both of them.
Grey Color: Weak Downtrend only supported by Slope or whatever you’ve selected.
Yellow Color: Possible reversal indication by Slope if enabled. Market is either sideways, consolidating or showing choppiness during that period.
SIGNALS
Green Circle: Market good for long with support of Volume and Volatility or whatever you’ve chosen from both of them.
Red Circle: Market good to short with support from Volume and Volatility or whatever you’ve chosen from both of them.
Flag: Market either touched upper or lower band and can act as good TP and warning for reversal.
FIBONACCI BANDS
I’ve included Fibonacci multiple bands which would act as good support/resistance zones. For example, 0.618 Fib level act as good local support and resistance in both upper and lower zones. Fibonacci values can be modified but should be lower than 1.
DEFAULT SETTINGS
I’ve set default Minimum length to 50 and Maximum length to 100 which I’ve found works best for almost all timeframes but you can change this delta to adapt your timeframe accordingly with more precision.
Dynamic length adoption is enabled based on Volume only but volatility can be selected which is already explained above.
Trend signals are enabled based on Slope and Volume but Volatility can be enabled for more precise confirmations.
In “ RVSI ” settings "Klinger Volume Oscillator" is set to default but others work good too especially Volume Zone Oscillator. For more details about Volume Breakout you can check “MZ RVSI Indicator".
ATR breakout is set to be positive if period 14 exceeds period 46 but can be changed if more adaption with volatility is required.
EDSMA super smoother filter length is set to 20 which can be increased to 50 or more for better smoothing but this will also change slope results accordingly.
EDSMA super smoother filter poles are set to 2 because found better results with 2 instead of 3.
FURTHER ENHANCEMENTS
So far, I've achieved better results with "Klinger Volume Oscillator" in RVSI but TFS Volume Oscillator and On Balance Volume can be used which would change dynamic length differently. It doesn't mean that results would be wrong with some oscillator and precise with others but every oscillator works in its specific way for and RVSI just detect strength of Volume based on provided oscillator.
