The legendary John Bollinger, the creator of Bollinger Bands, has done it again. He recently observed that an interaction between a long-term Bollinger band (BB 50) and a shorter-term Bollinger band (BB 20) can not only provide a frame of reference for price action and volatility but also identify trends and offer excellent entry and exit guidance. Although the concept of Bollinger Bands is not new, the concept of BB trend is. The 'Bollinger Bands Trend - Boosted' indicator is an advanced and versatile trading tool, designed to offer comprehensive analysis of market trends, price action, and volatility. This new concept captures interesting market dynamics invisible to other indicators. In addition to the power of Bollinger Band trends, this indicator is boosted and skillfully combines several technical analysis elements, including Bollinger Bands, Donchian Channels, an Exponential Moving Average (EMA), Super Trend, and a Choppiness Index, to further improve the model's performance. Each component is crafted to provide a multi-dimensional view of market dynamics. Key features include:
Dual Bollinger Bands: The indicator uses two sets of Bollinger Bands with distinct periods (50 and 20) to capture different aspects of market volatility and trend momentum. Users have the flexibility to show or hide the upper, middle, and lower bands for both sets, allowing for a customized view of market movements. Users can also enable a fill function with 90% transparency to show the area between the upper and lower BB bands. By default, only the midlines of BB 20 and BB 50 are shown on the chart, and the rest are hidden and need to be enabled by the user. Here is the default plot of BB20 and BB50:
Dynamic Color Coding of Lines: The middle bands of the Bollinger Bands dynamically change colors based on their relation to the price, offering an intuitive visual representation of the trend direction. The color turns green when the price is above the band and red when below. Dynamic Line Coloring aids traders in easily identifying trends and never going against the market trend. In this image below: BB20, BB50, Mid Donchian, EMA 100, and Super Trend all change color relative to the position of the price:
Crossover and Crossunder Detection: Detects crossovers and crossunders between the 20-period and 50-period Bollinger Bands, which can signal potential trading opportunities. Color filling and the change of color of the Bollinger midlines provide a great visual for trend detection. The color filling even without the Buy and Sell signal clearly shows the direction of the trend:
Customizable Buy and Sell Signals: The indicator generates buy and sell signals based on a complex set of conditions involving the relationship between price, Bollinger Bands, EMA, Donchian Channel, and other elements. Users can customize the length and parameters of these conditions to tailor the signals to the specific equity or market they are trading. This flexibility allows traders to optimize the indicator for different equities, trading strategies, and market conditions, making it a versatile tool for various trading styles, including short-term trading and longer-term trend following. The beauty of the "buy and sell signal" of this indicator is that users control the frequency and accuracy of the signals by changing the numbers in the setting for their favorite equity to trade:
Donchian Channel: This tool incorporates a customizable Donchian Channel to pinpoint potential support and resistance areas, providing key insights into market trends. It is especially effective in highlighting breakout points by showing the highest high and lowest low over a set number of periods, thus helping traders to identify potential entry and exit points based on price movements. The middle line of the channel changes color (lime or fuchsia) based on its position relative to the price, aiding in trend identification and strength assessment, with an option for traders to toggle its visibility on the chart.
Exponential Moving Average (EMA): Features a 100-period EMA (default but users can change the value), with an option for traders to toggle its visibility on the chart. The color of the EMA line adapts to green or red depending on whether the price is above or below it, further aiding in trend analysis.
Super Trend Indicator: Adds a Super Trend line to the analysis, providing insights into market trend direction and potential reversal points. This feature is customizable, allowing users to adjust its visibility and settings as per their analysis needs. The Super Trend is an adjustable indicator to help traders not lose sight of the longer trend:
Choppiness Index: An additional tool to assess market chop or trend robustness, with customizable settings for changing candle colors based on a defined choppiness threshold. Here is an example:
The Bollinger Band Width: BBW is a separate technical indicator derived from Bollinger Bands, used to measure market volatility. It has been added to this BB Trend indicator in an innovative manner to improve the BBT indicator. It calculates the gap between the upper and lower Bollinger Bands. A narrow BBW indicates low volatility, often seen in consolidating markets leading to a squeeze or buying opportunity, while a wide BBW signals high volatility, as observed during strong price movements or breakouts which often leads to distribution in Wyckoff terms. This indicator is crucial for traders to identify periods of market contraction and expansion, aiding in predicting volatility changes and potential trend shifts. Here is a visual presentation of BB Width:
User-Friendly Customizability: The indicator offers inputs for adjusting lengths, visibility, and parameters of its various components, empowering traders to customize the tool according to their individual trading style and preferences.
This indicator is ideal for traders who prefer a single but multi-faceted strategy, offering a blend of trend analysis, volatility measurement, and market momentum insights. Its adaptability makes it suitable for a wide range of markets and trading approaches.
Dual Bollinger Bands: The indicator uses two sets of Bollinger Bands with distinct periods (50 and 20) to capture different aspects of market volatility and trend momentum. Users have the flexibility to show or hide the upper, middle, and lower bands for both sets, allowing for a customized view of market movements. Users can also enable a fill function with 90% transparency to show the area between the upper and lower BB bands. By default, only the midlines of BB 20 and BB 50 are shown on the chart, and the rest are hidden and need to be enabled by the user. Here is the default plot of BB20 and BB50:
Dynamic Color Coding of Lines: The middle bands of the Bollinger Bands dynamically change colors based on their relation to the price, offering an intuitive visual representation of the trend direction. The color turns green when the price is above the band and red when below. Dynamic Line Coloring aids traders in easily identifying trends and never going against the market trend. In this image below: BB20, BB50, Mid Donchian, EMA 100, and Super Trend all change color relative to the position of the price:
Crossover and Crossunder Detection: Detects crossovers and crossunders between the 20-period and 50-period Bollinger Bands, which can signal potential trading opportunities. Color filling and the change of color of the Bollinger midlines provide a great visual for trend detection. The color filling even without the Buy and Sell signal clearly shows the direction of the trend:
Customizable Buy and Sell Signals: The indicator generates buy and sell signals based on a complex set of conditions involving the relationship between price, Bollinger Bands, EMA, Donchian Channel, and other elements. Users can customize the length and parameters of these conditions to tailor the signals to the specific equity or market they are trading. This flexibility allows traders to optimize the indicator for different equities, trading strategies, and market conditions, making it a versatile tool for various trading styles, including short-term trading and longer-term trend following. The beauty of the "buy and sell signal" of this indicator is that users control the frequency and accuracy of the signals by changing the numbers in the setting for their favorite equity to trade:
Donchian Channel: This tool incorporates a customizable Donchian Channel to pinpoint potential support and resistance areas, providing key insights into market trends. It is especially effective in highlighting breakout points by showing the highest high and lowest low over a set number of periods, thus helping traders to identify potential entry and exit points based on price movements. The middle line of the channel changes color (lime or fuchsia) based on its position relative to the price, aiding in trend identification and strength assessment, with an option for traders to toggle its visibility on the chart.
Exponential Moving Average (EMA): Features a 100-period EMA (default but users can change the value), with an option for traders to toggle its visibility on the chart. The color of the EMA line adapts to green or red depending on whether the price is above or below it, further aiding in trend analysis.
Super Trend Indicator: Adds a Super Trend line to the analysis, providing insights into market trend direction and potential reversal points. This feature is customizable, allowing users to adjust its visibility and settings as per their analysis needs. The Super Trend is an adjustable indicator to help traders not lose sight of the longer trend:
Choppiness Index: An additional tool to assess market chop or trend robustness, with customizable settings for changing candle colors based on a defined choppiness threshold. Here is an example:
The Bollinger Band Width: BBW is a separate technical indicator derived from Bollinger Bands, used to measure market volatility. It has been added to this BB Trend indicator in an innovative manner to improve the BBT indicator. It calculates the gap between the upper and lower Bollinger Bands. A narrow BBW indicates low volatility, often seen in consolidating markets leading to a squeeze or buying opportunity, while a wide BBW signals high volatility, as observed during strong price movements or breakouts which often leads to distribution in Wyckoff terms. This indicator is crucial for traders to identify periods of market contraction and expansion, aiding in predicting volatility changes and potential trend shifts. Here is a visual presentation of BB Width:
User-Friendly Customizability: The indicator offers inputs for adjusting lengths, visibility, and parameters of its various components, empowering traders to customize the tool according to their individual trading style and preferences.
This indicator is ideal for traders who prefer a single but multi-faceted strategy, offering a blend of trend analysis, volatility measurement, and market momentum insights. Its adaptability makes it suitable for a wide range of markets and trading approaches.
Phát hành các Ghi chú:
Updated some language
Phát hành các Ghi chú:
- Added VWAP and Standard deviations.
- Also added labels for all the lines.
- Added offset for the labels' distance from the candles.
- Also added labels for all the lines.
- Added offset for the labels' distance from the candles.
Phát hành các Ghi chú:
language change
Phát hành các Ghi chú:
Fixed the label repainting
Phát hành các Ghi chú:
Added two info tables for BB %B and BB that shows the B% for the chart timeframe.
Learn about BB %B here: https://www.tradingview.com/support/solutions/43000501971-bollinger-bands-b-b/
Also added BB Width For hourly and daily chart. On lower timeframe the signal is not very reliable so it only shows Daily BB Width and Hourly BB width.
Learn more about BB Width here:
https://www.tradingview.com/support/solutions/43000501972-bollinger-bands-width-bbw/
Both BB%B and BBW are color coded to show the distribution and accumulation phases. They show over sold and overbought areas.
Learn about BB %B here: https://www.tradingview.com/support/solutions/43000501971-bollinger-bands-b-b/
Also added BB Width For hourly and daily chart. On lower timeframe the signal is not very reliable so it only shows Daily BB Width and Hourly BB width.
Learn more about BB Width here:
https://www.tradingview.com/support/solutions/43000501972-bollinger-bands-width-bbw/
Both BB%B and BBW are color coded to show the distribution and accumulation phases. They show over sold and overbought areas.
Phát hành các Ghi chú:
Added the current price of BB 20 and BB 50 to the BB %B info table.
Phát hành các Ghi chú:
fixed a typo