This is an updated version of the Combo Indicator I previously published. It combines Bollinger Bands, 3 moving averages and 1 exponential moving average all into one chart. I use this indicators on most of my charts so wanted an easy way of combining them all.
SPECIAL BONUS
This indicator also includes a common Bollinger Band trading strategy built in. It was developed with options trading in mind for members over at OptionsPlayers.com. It tries to detect when the BB tunnel tightens, and then triggers an entry position when it detects the breakout. No strategy is 100% accurate, and there are some false positives, but it seems to work fairly well. However, do your own due diligence and use at your own risk.
The strategy can be turned on using a checkbox in the properties.
SPECIAL BONUS
This indicator also includes a common Bollinger Band trading strategy built in. It was developed with options trading in mind for members over at OptionsPlayers.com. It tries to detect when the BB tunnel tightens, and then triggers an entry position when it detects the breakout. No strategy is 100% accurate, and there are some false positives, but it seems to work fairly well. However, do your own due diligence and use at your own risk.
The strategy can be turned on using a checkbox in the properties.
เอกสารเผยแพร่:
Just a bit about the variables:
Other than setting the moving averages and EMA to whatever you would like, there are only 3 variables you really need to adjust for the strategy. The MAs/EMAs have no effect on the strategy.
Band width as $ of Price: - This is the maximum width allowed for the tightened tunnel. This needs to be adjusted for each timeframe, as price moves increase with longer timeframes. For example, on the 15min AAPL chart, I consider the BBs in a tightened tunnel if the width of the tunnel is less than $1. $1 is about 0.6% of the current stock price, so I use 0.6 for this setting. This helps avoid false positives when not in a tunnel.
Tunnel Detection: - This is basically how many bars the tunnel needs to be before we consider it a tunnel. Reduce the number if you're ok with quicker moves. Increase it if you want a nice long tunnel before the breakout.
Detection Deviation: - This variable sets how flat the BBs need to be through the tunnel detection range to be considered a tunnel. It is literally the tolerance for standard deviation of the upper BB through the tunnel detection range. If the calculated standard deviation is higher than this number, then the BBs are moving up and down too much to consider this a tunnel.
Hope this helps. If you have any questions, you can PM me here or send email Tracks@optionsplayers.com
Other than setting the moving averages and EMA to whatever you would like, there are only 3 variables you really need to adjust for the strategy. The MAs/EMAs have no effect on the strategy.
Band width as $ of Price: - This is the maximum width allowed for the tightened tunnel. This needs to be adjusted for each timeframe, as price moves increase with longer timeframes. For example, on the 15min AAPL chart, I consider the BBs in a tightened tunnel if the width of the tunnel is less than $1. $1 is about 0.6% of the current stock price, so I use 0.6 for this setting. This helps avoid false positives when not in a tunnel.
Tunnel Detection: - This is basically how many bars the tunnel needs to be before we consider it a tunnel. Reduce the number if you're ok with quicker moves. Increase it if you want a nice long tunnel before the breakout.
Detection Deviation: - This variable sets how flat the BBs need to be through the tunnel detection range to be considered a tunnel. It is literally the tolerance for standard deviation of the upper BB through the tunnel detection range. If the calculated standard deviation is higher than this number, then the BBs are moving up and down too much to consider this a tunnel.
Hope this helps. If you have any questions, you can PM me here or send email Tracks@optionsplayers.com
เอกสารเผยแพร่:
Updated version of the script includes a bollinger band width indicator. When scalping, a certain amount of price movement is required for a trade to make enough gains. Once you figure out what that value is for your favourite ticker, just enter that amount (in cents) into the threshold value in the properties. When the bollinger bands reduce to that amount or less, the bollinger band fill will turn red, indicating that plays in this range will likely not yield good results. Works excellent with my TBB Strategy (also included in the indicator).
เอกสารเผยแพร่:
Combo indicator updated to include previous day high, low and close lines.