Summary This indicator shows Bollinger bands with plus/minus 3σ bands and lagging span(called chikou span in Japanese as used in Ichimoku cloud) showing alert when lagging span crossing plus/minus 2σ bands, which are buy/sell signal respectively.
Bollinger bands are one of frequently used technical analysis indicators in trading and some traders use Bollinger bands and lagging span together in order to identify trading opportunities. When lagging span crosses upper bands in bullish trend and lower bands in bearish trend, that would be considered buying/selling opportunities respectively. Generally, lagging span is used offsetting current price by 26 period. This indicator shows signal and alerts when lagging span crossing ±2σ bands as potential trading opportunities.
Functions -To show Bollinger bands with plus/minus 3 sigma bands -To show SMA as Bollinger bands middle line with configurable period of SMA. -To show lagging span, enabling users to set lagging period and control display of lagging span by checkbox -To show signal on chart when lagging span crosses +2σ bands and -2σ band with ability to set alert -To control display of the signal by checkbox
The signals are designed to indicate if the market is bullish or bearish when signals displayed. Let me explain a bullish example with the chart below.
You can see two vertical lines; Point A and B.
Point A: Where lagging span crosses BB 2 sigma Point B: Where a bullish signal occurs
People who took a long position since point A has potentially got unrealized profit as of point B(unless they are stopped out). Hence, buyers are advantageous at point B. At this point, buyers would be getting more aggressive adding more position or so. (On the other hand sellers who took short positions since point A has got drawdown. They are thinking about cutting losses.)
Lagging span is offset price from the current candle where you are. On the contrary, this also means that lagging span shows future price from the specific offset period that you set. If lagging span stays over close, this means buyers who took long position at the point where lagging span goes over close, possibly has got unrealized gain as long as lagging span is still beyond close. BB 2 sigmas are one of the criteria that indicates strong momentum in the market, that is why signals are displayed when lagging span crosses BB 2 sigmas as there would be strong price movement in the future.
Hope this clarifies.
Rocketman
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@FX365_Thailand, No. This is not clear at all. Can you make a video explaining when to buy and when to sell?