Trendline with bands

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Introduction
A trendline indicator that plots bands around a set trendline is a technical analysis tool used in financial markets to identify potential support and resistance levels. This indicator typically consists of a central trendline, which represents the general direction of the market (uptrend, downtrend, or sideways), and two bands plotted above and below this trendline. These bands are usually set at a fixed percentage or standard deviation from the trendline, creating a channel within which the price is expected to move

The bands help traders visualize the volatility of the asset and identify overbought or oversold conditions. When the price touches or moves outside the upper band, it may indicate that the asset is overbought and could be due for a correction. Conversely, when the price touches or moves outside the lower band, it may suggest that the asset is oversold and could be poised for a rebound.

Institutions might use similar but more sophisticated methods to buy and sell in a trend.

Settings
To set up your trendline indicator, follow these steps:

1. Begin by selecting two points on the chart. These points will serve as your coordinates, representing both time and price.
   
2. Choose your price source, which will be used to calculate the trendline.
   
3. Finally, configure the z-scores for your bands to determine their distance from the central trendline.
   

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Phát hành các Ghi chú

Changes:

• Improved calculation time.
  
• The script calculated differently between point 1 and 2, and from point 2 to latest bar. Now corrected.
  
• Made it possible to change line colors.
  
• Added a calculated angle in the lower right corner. To be noted, it is based on the candle amount, not the length on your screen.