MTF BB+KC Avg
Bollinger Bands (BB) are a widely used technical analysis created by John Bollinger in the early 1980’s. Bollinger Bands consist of a band of three lines which are plotted in relation to instrument prices. The line in the middle is usually a Simple Moving Average (SMA) set to a period of 20 days (The type of trend line and period can be changed by the trader; however a 20 day moving average is by far the most popular). This indicator does not plot the middle line. The Upper and Lower Bands are used as a way to measure volatility by observing the relationship between the Bands and price. Typically the Upper and Lower Bands are set to two standard deviations away from the middle line, however the number of standard deviations can also be adjusted in the indicator.
Keltner Channels (KC) are banded lines similar to Bollinger Bands and Moving Average Envelopes. They consist of an Upper Envelope above a Middle Line (not plotted in this indicator) as well as a Lower Envelope below the Middle Line. The Middle Line is a moving average of price over a user-defined time period. Either a simple moving average or an exponential moving average are typically used. The Upper and Lower Envelopes are set a (user-defined multiple) of a range away from the Middle Line. This can be a multiple of the daily high/low range, or more commonly a multiple of the Average True Range.
This indicator is built on AVERAGING the BB and KC values for each bar, so you have an efficient metric of AVERAGE volatility. The indicator visualizes changes in volatility which is of course dynamic.
What to look for
High/Low Prices
One thing that must be understood about this indicator's plots is that it averages by adding BB levels to KC levels and dividing by 2. So the plots provide a relative definition of high and low from two very popular indicators. Prices are almost always within the upper and lower bands. Therefore, when prices move up near the upper or lower bands or even break through the band, many traders would see that price action as OVER-EXTENDED (either overbought or oversold, as applicable). This would preset a possible selling or buying opportunity.
Cycling Between Expansion and Contraction
Volatility can generally be seen as a cycle. Typically periods of time with low volatility and steady or sideways prices (known as contraction) are followed by period of expansion. Expansion is a period of time characterized by high volatility and moving prices. Periods of expansion are then generally followed by periods of contraction. It is a cycle in which traders can be better prepared to navigate by using Bollinger Bands because of the indicators ability to monitor ever changing volatility.
Walking the Bands
Of course, just like with any indicator, there are exceptions to every rule and plenty of examples where what is expected to happen, does not happen. Previously, it was mentioned that price breaking above the Upper Band or breaking below the Lower band could signify a selling or buying opportunity respectively. However this is not always the case. “Walking the Bands” can occur in either a strong uptrend or a strong downtrend.
During a strong uptrend, there may be repeated instances of price touching or breaking through the Upper Band. Each time that this occurs, it is not a sell signal, it is a result of the overall strength of the move. Likewise during a strong downtrend there may be repeated instances of price touching or breaking through the Lower Band. Each time that this occurs, it is not a buy signal, it is a result of the overall strength of the move.
Keep in mind that instances of “Walking the Bands” will only occur in strong, defined uptrends or downtrends.
Inputs
TimeFrame
You can select any timeframe froom 1 minute to 12 months for the bar measured.
Length of the internal moving averages
You can select the period of time to be used in calculating the moving averages which create the base for the Upper and Lower Bands. 20 days is the default.
Basis MA Type
Determines the type of Moving Average that is applied to the basis plot line. Default is SMA and you can select EMA.
Source
Determines what data from each bar will be used in calculations. Close is the default.
StdDev/Multiplier
The number of Standard Deviations (for BB) or Multiplier (for KC) away from the moving averages that the Upper and Lower Bands should be. 2 is the default value for each indicator.
Keltnerchannelsbands
LNL Keltner CandlesLNL Keltner Candles
This indicator plots mean reversion (reversal) arrows with custom painted candles based on the price touch or close above or below keltner channel limits (upper & lower bands). This study was created primarily for swing trading & higher time frames such as daily and weekly. Lower time frames might result in more false signals.
Mean Reversal Arrows:
1. Reversal Arrow Up - If the price drops below the lower band extremes, reversal up is the trigger for a bullish mean reversion.
2. Reversal Arrow Down - Once the price reach the higher band extremes, reversal down is the trigger for a bearish mean reversion.
The Concept of Mean Reversion:
There are just two types of moves in any market: The market is either expanding from the mean or retracing back to the mean. These reversions & epxansions are happening across all types of markets. The goal of this study is to catch the powerful mean reversion from extremes back to the mean. Once the candles light up green / red, it is time to look for the reversal (purple) arrow which triggers the mean reversion setup. Mean reversion is not about catching the next big swing turn to new highs or lows. It is all about the base hits = the mean. So the target here is always the average price. The idea here is to catch the average market ebbs & flows, not the next home run.
What Do I Mean by Mean?
Mean is usually the average price from the last 20-30 bars. Basically something like a 20 MA or Keltner Channel or Bollinger Band midline are really good visual representators of the mean (average price).
Hope it helps.
The Killer Whale - Multiple Keltner Channels by JoeFinally, after centuries of pain and suffering, the good townsfolk of TradingView have been given a single Keltner Channel indicator that will grant them FREE access to MORE THAN ONE Keltner Channel.
With "The Killer Whale" indicator, Joe has once again saved all the peasants—those who cannot add 10,000 indicators to our charts—from the dirty tyrants who arrogantly rule over us with disdain.
And, now, not only can you have more than one Keltner Channel with this single indicator, but you can have UP TO FOUR! For FREE!
Yes, I know, it seems too good to be true. But, install and enjoy your newfound freedom!
Options:
Keltner Channel length and source
Multiplication Factor for each channel
SMA or EMA
ATR Length
Border and fill colors for each channel
Now, go, therefore, and Keltner to your heart's content. May The Killer Whale be with your charts forever!
Top Trend [Loxx]Top Trend is a trend following indicator that signals breakouts and plots dynamic support and resistance levels.
Included:
-Calculation of Top Trend using either Bollinger Bands and Keltner Channels
This is an exact clone of the "TopTrend" for MT4 indicator
Bollinger Bands + Keltner Channel Refurbished█ Goals
This is an indicator that brings together Bollinger Bands and Keltner's Channels in one thing.
Both are very similar, so I decided to make a merge of the best features I found out there.
Here there is the possibility of choosing one of these two as needed.
In addition, I added the following resources:
1. Pre-Defined intermediate bands with Fibonacci values;
2. Detachment of the bands in which the price was present;
3. Choice of Moving Average:
"Simple", "Exponential", "Regularized Exponential", "Hull", "Arnaud Legoux", "Weighted Moving Average", "Least Squares Moving Average (Linear Regression)", "Volume Weighted Moving Average", "Smoothed Moving Average", "Median", "VWAP");
4. Statistics: bars count within the bands.
█ Concepts
Keltner Channels vs. Bollinger Bands
"These two indicators are quite similar.
Keltner Channels use ATR to calculate the upper and lower bands while Bollinger Bands use standard deviation instead.
The interpretation of the indicators is similar, although since the calculations are different the two indicators may provide slightly different information or trade signals."
(Investopedia)
Bollinger Bands (BB)
"Bollinger Bands (BB) are a widely popular technical analysis instrument created by John Bollinger in the early 1980’s.
Bollinger Bands consist of a band of three lines which are plotted in relation to security prices.
The line in the middle is usually a Simple Moving Average (SMA) set to a period of 20 days (the type of trend line and period can be changed by the trader; however a 20 day moving average is by far the most popular).
The SMA then serves as a base for the Upper and Lower Bands which are used as a way to measure volatility by observing the relationship between the Bands and price.
Typically the Upper and Lower Bands are set to two standard deviations away from the SMA (The Middle Line); however the number of standard deviations can also be adjusted by the trader."
(TradingView)
Keltner Channels (KC)
"The Keltner Channels (KC) indicator is a banded indicator similar to Bollinger Bands and Moving Average Envelopes.
They consist of an Upper Envelope above a Middle Line as well as a Lower Envelope below the Middle Line.
The Middle Line is a moving average of price over a user-defined time period.
Either a simple moving average or an exponential moving average are typically used. The Upper and Lower Envelopes (user defined) are set a range away from the Middle Line.
This can be a multiple of the daily high/low range, or more commonly a multiple of the Average True Range."
(TradingView)
█ Examples
Bollinger Bands with 200 REMA:
Keltner Channel with 200 REMA:
Bollinger Bands with 55 ALMA:
Keltner Channel with 55 ALMA:
Bollinger Bands with 55 Least Squares Moving Average:
█ Thanks
- TradingView (BB, KC, ATR, MA's)
- everget (Regularized Exponential Moving Average)
- TimeFliesBuy ("Triple Bollinger Bands")
- Rashad ("Fibonacci Bollinger Bands")
- Dicargo_Beam ("Is the Bollinger Bands assumption wrong?")
LNL Keltner ExhaustionLNL Keltner Exhaustion resolves the constant issue of Bands vs. EMAs
With the keltner exhaustion wedges, you can easily see the keltner channel extremes witout using the actual bands. That way, you will know whether the price is outside of the keltner channels + you can use other indicators (such as EMAs) on chart without the bands so the chart does not look messy & hard to read.
Two Types of Wedges:
1. Green/Red Wedge - Price action is extended outside the regular band. More of a "profit taking" zone rather than "entry taking" (default set to 3.0 ATR factor).
2. Purple Wedge - Price action is extended outside of the extreme band. Chances are price will revert to mean soon (default set to 4.0 ATR factor).
Works great as a target tool with the squeeze setup or as an overall extension gauge.
Hope it helps.
Keltner Worm ForecastBeta V0.1.0
This Keltner Channel Worm gives 6 different KCs at max, and allows you to set a multiplier for the offset and worm settings (exponential).
The idea behind this script is that the overall brightness of the Keltner Channel will indicate the strength of the forecast. If the candles are shrouded by darkness, a correction is due.
Enjoy and let me know if you have any suggestions for improvements down below!
<3 Happy Trading
Sir Poggy
Keltner Channel Alerts [QuantNomad]This is a script with alerts for standard Keltner Channer Strategy you can find in TradingView.
Use "Once Per Bar" option when creating alerts.
