ONE RING 8 MA Bands with RaysCycle analysis tool ...
MAs: Eight moving averages (MA1–MA8) with customizable lengths, types (RMA, WMA, EMA, SMA), and offsets
Bands: Upper/lower bands for each MA, calculated based on final_pctX (Percentage mode) or final_ptsX (Points mode), scaled by multiplier
Rays: Forward-projected lines for bands, with customizable start points, styles (Solid, Dashed, Dotted), and lengths (up to 500 bars)
Band Choices
Manual: Uses individual inputs for band offsets
Uniform: Sets all offsets to base_pct (e.g., 0.1%) or base_pts (e.g., 0.1 points)
Linear: Scales linearly (e.g., base_pct * 1, base_pct * 2, base_pct * 3 ..., base_pct * 8)
Exponential: Scales exponentially (e.g., base_pct * 1, base_pct * 2, base_pct * 4, base_pct * 8 ..., base_pct * 128)
ATR-Based: Offsets are derived from the Average True Range (ATR), scaled by a linear factor. Dynamic bands that adapt to market conditions, useful for breakout or mean-reversion strategies. (final_pct1 = base_pct * atr, final_pct2 = base_pct * atr * 2, ..., final_pct8 = base_pct * atr * 8)
Geometric: Offsets follow a geometric progression (e.g., base_pct * r^0, base_pct * r^1, base_pct * r^2, ..., where r is a ratio like 1.5) This is less aggressive than Exponential (which uses powers of 2) and provides a smoother progression.
Example: If base_pct = 0.1, r = 1.5, then final_pct1 = 0.1%, final_pct2 = 0.15%, final_pct3 = 0.225%, ..., final_pct8 ≈ 1.71%
Harmonic: Offsets are based on harmonic flavored ratios. final_pctX = base_pct * X / (9 - X), final_ptsX = base_pts * X / (9 - X) for X = 1 to 8 This creates a harmonic-like progression where offsets increase non-linearly, ensuring MA8 bands are wider than MA1 bands, and avoids duplicating the Linear choice above.
Ex. offsets for base_pct = 0.1: MA1: ±0.0125% (0.1 * 1/8), MA2: ±0.0286% (0.1 * 2/7), MA3: ±0.05% (0.1 * 3/6), MA4: ±0.08% (0.1 * 4/5), MA5: ±0.125% (0.1 * 5/4), MA6: ±0.2% (0.1 * 6/3), MA7: ±0.35% (0.1 * 7/2), MA8: ±0.8% (0.1 * 8/1)
Square Root: Offsets grow with the square root of the band index (e.g., base_pct * sqrt(1), base_pct * sqrt(2), ..., base_pct * sqrt(8)). This creates a gradual widening, less aggressive than Linear or Exponential. Set final_pct1 = base_pct * sqrt(1), final_pct2 = base_pct * sqrt(2), ..., final_pct8 = base_pct * sqrt(8).
Example: If base_pct = 0.1, then final_pct1 = 0.1%, final_pct2 ≈ 0.141%, final_pct3 ≈ 0.173%, ..., final_pct8 ≈ 0.283%.
Fibonacci: Uses Fibonacci ratios (e.g., base_pct * 1, base_pct * 1.618, base_pct * 2.618
Percentage vs. Points Toggle:
In Percentage mode, bands are calculated as ma * (1 ± (final_pct / 100) * multiplier)
In Points mode, bands are calculated as ma ± final_pts * multiplier, where final_pts is in price units.
Threshold Setting for Slope:
Threshold setting for determining when the slope would be significant enough to call it a change in direction. Can check efficiency by setting MA1 to color on slope temporarily
Arrow table: Shows slope direction of 8 MAs using an Up or Down triangle, or shows Flat condition if no triangle.
Wyszukaj w skryptach "band"
Dynamic RSI Bollinger Bands with Waldo Cloud
TradingView Indicator Description: Dynamic RSI Bollinger Bands with Waldo Cloud
Title: Dynamic RSI Bollinger Bands with Waldo Cloud
Short Title: Dynamic RSI BB Waldo
Overview:
Introducing an experimental indicator, the Dynamic RSI Bollinger Bands with Waldo Cloud, designed for adventurous traders looking to explore new dimensions in technical analysis. This indicator overlays on your chart, providing a unique perspective by integrating the Relative Strength Index (RSI) with Bollinger Bands, creating a dynamic trading tool that adapts to market conditions through the lens of momentum and volatility.
What is it?
This innovative indicator combines the traditional Bollinger Bands with the RSI in a way that hasn't been commonly explored. Here's a breakdown:
RSI Integration: The RSI is calculated with customizable length settings, and its values are used not just for momentum analysis but as the basis for the Bollinger Bands. This means the position and width of the bands are directly influenced by the RSI, offering a visual representation of momentum within the context of price volatility.
Dynamic Bollinger Bands: Instead of using price directly, the Bollinger Bands are calculated using a scaled version of the RSI. This scaling is done to fit the RSI values into the price range, ensuring the bands are relevant to the actual price movement. The standard deviation for these bands is also scaled accordingly, providing a unique volatility measure that's momentum-driven.
Waldo Cloud: Named after a visual representation concept, the 'Waldo Cloud' refers to the colored area between the Bollinger Bands, which changes based on various conditions:
Purple when RSI is overbought.
Blue when RSI is oversold.
Green for bullish conditions, defined by the fast-moving average crossing above the slow one, RSI is bullish, and the price is above the slow MA.
Red for bearish conditions, when the fast MA crosses below the slow MA, the RSI is bearish, and the price is below the slow MA.
Gray for neutral market conditions.
Moving Averages: Two simple moving averages (Fast MA and Slow MA) are included, which can be toggled on or off, offering additional trend analysis through crossovers.
How to Use It:
Given its experimental nature, this indicator should be used with caution and in conjunction with other analysis methods:
Identifying Market Conditions: Use the color of the Waldo Cloud to gauge market sentiment. A green cloud might suggest a good time to consider long positions, while a red cloud could indicate potential shorting opportunities. Purple and blue clouds highlight extreme conditions that might precede reversals.
Volatility and Momentum: The dynamic nature of the Bollinger Bands based on RSI provides insight into how momentum is affecting price volatility. When the bands are wide, it might indicate high momentum and potential trend continuation or reversal, depending on the RSI's position relative to its overbought/oversold levels.
Trend Confirmation: The moving average crossovers can act as confirmation signals. For instance, a bullish crossover (fast MA over slow MA) within a green cloud might strengthen a buy signal, whereas a bearish crossover in a red cloud might reinforce a sell decision.
Customization: Adjust the RSI length, overbought/oversold levels, and moving average lengths to suit different trading styles or market conditions. Experiment with these settings to find what works best for your strategy.
Combining with Other Indicators: Since this is an experimental tool, it's advisable to use it alongside established indicators like traditional Bollinger Bands, MACD, or trend lines to validate signals.
Conclusion:
The Dynamic RSI Bollinger Bands with Waldo Cloud is an experimental venture into combining momentum with volatility visually and interactively. It's designed for traders who are open to exploring new methods of market analysis.
Remember, due to its experimental status, this indicator should be part of a broader trading strategy, and backtesting or paper trading is recommended before applying it in live trading scenarios. Keep an eye on how the market reacts to the signals provided by this indicator and always consider risk management practices.
Multi-Band Comparison Strategy (CRYPTO)Multi-Band Comparison Strategy (CRYPTO)
Optimized for Cryptocurrency Trading
This Pine Script strategy is built from the ground up for traders who want to take advantage of cryptocurrency volatility using a confluence of advanced statistical bands. The strategy layers Bollinger Bands, Quantile Bands, and a unique Power-Law Band to map out crucial support/resistance zones. It then focuses on a Trigger Line—the lower standard deviation band of the upper quantile—to pinpoint precise entry and exit signals.
Key Features
Bollinger Band Overlay
The upper Bollinger Band visually shifts to yellow when price exceeds it, turning black otherwise. This offers a straightforward way to gauge heightened momentum or potential market slowdowns.
Quantile & Power-Law Integration
The script calculates upper and lower quantile bands to assess probabilistic price extremes.
A Power-Law Band is also available to measure historically significant return levels, providing further insight into overbought or oversold conditions in fast-moving crypto markets.
Standard Deviation Trigger
The lower standard deviation band of the upper quantile acts as the strategy’s trigger. If price consistently holds above this line, the strategy interprets it as a strong bullish signal (“green” zone). Conversely, dipping below indicates a “red” zone, signaling potential reversals or exits.
Consecutive Bar Confirmation
To reduce choppy signals, you can fine-tune the number of consecutive bars required to confirm an entry or exit. This helps filter out noise and false breaks—critical in the often-volatile crypto realm.
Adaptive for Multiple Timeframes
Whether you’re scalping on a 5-minute chart or swing trading on daily candles, the strategy’s flexible confirmation and overlay options cater to different market conditions and trading styles.
Complete Plot Customization
Easily toggle visibility of each band or line—Bollinger, Quantile, Power-Law, and more.
Built-in Simple and Exponential Moving Averages can be enabled to further contextualize market trends.
Why It Excels at Crypto
Cryptocurrencies are known for rapid price swings, and this strategy addresses exactly that by combining multiple statistical methods. The quantile-based confirmation reduces noise, while Bollinger and Power-Law bands help highlight breakout regions in trending markets. Traders have reported that it works seamlessly across various coins and tokens, adapting its triggers to each asset’s unique volatility profile.
Give it a try on your favorite cryptocurrency pairs. With advanced data handling, crisp visual cues, and adjustable confirmation logic, the Multi-Band Comparison Strategy provides a robust framework to capture profitable moves and mitigate risk in the ever-evolving crypto space.
Bollinger Bands + RSI StrategyThe Bollinger Bands + RSI strategy combines volatility and momentum indicators to spot trading opportunities in intraday settings. Here’s a concise summary:
Components:
Bollinger Bands: Measures market volatility. The lower band signals potential buying opportunities when the price is considered oversold.
Relative Strength Index (RSI): Evaluates momentum to identify overbought or oversold conditions. An RSI below 30 indicates oversold, suggesting a buy, and above 70 indicates overbought, suggesting a sell.
Strategy Execution:
Buy Signal : Triggered when the price falls below the lower Bollinger Band while the RSI is also below 30.
Sell Signal : Activated when the price exceeds the upper Bollinger Band with an RSI above 70.
Exit Strategy : Exiting a buy position is considered when the RSI crosses back above 50, capturing potential rebounds.
Advantages:
Combines price levels with momentum for more reliable signals.
Clearly defined entry and exit points help minimize emotional trading.
Considerations:
Can produce false signals in very volatile or strongly trending markets.
Best used in markets without a strong prevailing trend.
This strategy aids traders in making decisions based on technical indicators, enhancing their ability to profit from short-term price movements.
Volatility Gaussian Bands [BigBeluga]The Volatility Gaussian Bands indicator is a cutting-edge tool designed to analyze market trends and volatility with high precision. By applying a Gaussian filter to smooth price data and implementing dynamic bands based on market volatility, this indicator provides clear signals for trend direction, strength, and potential reversals. With updated volatility calculations, it enhances the accuracy of trend detection, making it a powerful addition to any trader's toolkit.
⮁ KEY FEATURES & USAGE
● Gaussian Filter Trend Bands:
The Gaussian Filter forms the foundation of this indicator by smoothing price data to reveal the underlying trend. The trend is visualized through upper and lower bands that adjust dynamically based on market volatility. These bands provide clear visual cues for traders: a crossover above the upper band indicates a potential uptrend, while a cross below the lower band signals a potential downtrend. This feature allows traders to identify trends with greater accuracy and act accordingly.
● Dynamic Trend Strength Gauges:
The indicator includes trend strength gauges positioned at the top and bottom of the chart. These gauges dynamically measure the strength of the uptrend and downtrend, based on the middle Gaussian line. Even if the trend is downward, a rising midline will cause the upward trend strength gauge to show an increase, offering a nuanced view of the market’s momentum.
Weakening of the trend:
● Fast Trend Change Indicators:
Triangles with a "+" symbol appear on the chart to signal rapid changes in trend direction. These indicators are particularly useful when the trend changes swiftly while the midline continues to grow in its previous direction. For instance, during a downtrend, if the trend suddenly shifts upward while the midline is still declining, a triangle with a "+" will indicate this quick reversal. This feature is crucial for traders looking to capitalize on rapid market movements.
● Retest Signals:
Retest signals, displayed as triangles, highlight potential areas where the price may retest the Gaussian line during a trend. These signals provide an additional layer of analysis, helping traders confirm trend continuations or identify possible reversals. The retest signals can be customized based on the trader’s preferences.
⮁ CUSTOMIZATION
● Length Adjustment:
The length of the Gaussian filter can be customized to control the sensitivity of trend detection. Shorter lengths make the indicator more responsive, while longer lengths offer a smoother, more stable trend line.
● Volatility Calculation Mode:
Traders can select from different modes (AVG, MEDIAN, MODE) to calculate the Gaussian filter, allowing for flexibility in how trends are detected and analyzed.
● Retest Signals Toggle:
Enable or disable the retest signals based on your trading strategy. This toggle allows traders to choose whether they want these additional signals to appear on the chart, providing more control over the information displayed during their analysis.
⮁ CONCLUSION
The Volatility Gaussian Bands indicator is a versatile and powerful tool for traders focused on trend and volatility analysis. By combining Gaussian-filtered trend lines with dynamic volatility bands, trend strength gauges, and rapid trend change indicators, this tool provides a comprehensive view of market conditions. Whether you are following established trends or looking to catch early reversals, the Volatility Gaussian Bands offers the precision and adaptability needed to enhance your trading strategy.
[MAD] Fibonacci Bands with SmoothingHi, this is just an easy script, nothing special, it was a request from a community member and was finished in just 40 minutes :D
This indicator offers a approach to tracking market price movements by utilizing Fibonacci-based levels combined with customizable smoothing options for both the bands and the high/low values.
Key Features:
Customizable Moving Averages: Choose from a variety of smoothing methods, including SMA, EMA, WMA, HMA, VWMA, and advanced Ehlers-based methods.
This allows for flexible adaptation to different assets.
Multiple Fibonacci Band Multipliers: The user can define six different multipliers for both the upper and lower Fibonacci bands, allowing for granular customization of the indicator. The middle line serves as the central reference, and the multipliers extend the bands outward based on price range dynamics.
High/Low Smoothing: In addition to smoothing the Fibonacci bands, users can apply smoothing to the high and low prices that form the basis for calculating the Fibonacci bands. This ensures that the indicator responds smoothly to market movements, reducing noise while capturing key trends.
Forward Shift Option: Allows for projecting the bands into the future by shifting the calculated levels forward by a user-specified number of periods. This feature is particularly useful for those interested in anticipating price actions and future trends.
Visual Enhancements: The indicator features filled regions between bands to clearly visualize the zones of price movement. The fills between the bands offer insight into potential support and resistance zones, based on price levels defined by the Fibonacci ratios.
How It Works:
The indicator uses the highest and lowest closing prices over a specified lookback period to establish a price range. Based on this range, it calculates the middle line (0.5 level) and applies user-defined Fibonacci multipliers to generate both upper and lower bands. Users have control over the smoothing method for both the high/low prices and the bands themselves, allowing for an adaptive experience that can be tailored to different timeframes or market conditions.
For visualization, areas between the upper and lower bands are filled with distinct colors, providing an intuitive view of the potential price zones where the market might react or consolidate.
These fills highlight the zones created by the Fibonacci bands, helping users identify critical market levels with ease.
have fun
p.s.: @frankchef hope that suits your needs & expectations ;-)
Multiple Bollinger Bands + Volatility [AlgoTraderPro]This indicator helps traders visualize price ranges and volatility changes. Designed to assist in identifying potential consolidation zones, the indicator uses multiple layers of Bollinger Bands combined with volatility-based shading. This can help traders spot periods of reduced price movement, which are often followed by breakouts or trend reversals.
█ FEATURES
Multiple Bollinger Bands: Displays up to seven bands with customizable standard deviations, providing a layered view of price range activity.
Volatility Measurement: Tracks changes in Bollinger Band width to display volatility percentage and direction (increasing, decreasing, or neutral).
Volatility Shading: Uses color-coded shading between the outermost bands to indicate changes in volatility, helping to visualize potential consolidation zones.
Customizable Inputs: Modify lookback periods, moving average lengths, and standard deviations for each band to tailor the analysis to your strategy.
Volatility Table: Displays a table on the chart showing real-time volatility data and direction for quick reference.
█ HOW TO USE
Add the Indicator: Apply it to your TradingView chart.
Adjust Settings: Customize the Bollinger Bands’ parameters to suit your trading timeframe and strategy.
Analyze Consolidation Zones: Use the multiple bands and volatility shading to identify areas of reduced price activity, signaling potential breakouts.
Monitor Volatility: Refer to the volatility table to track real-time shifts in market volatility.
Use in Different Markets: Adapt the settings for various assets and timeframes to assess market conditions effectively.
█ NOTES
• The indicator is useful in consolidating markets where price movement is limited, offering insights into potential breakout areas.
• Adjust the settings based on asset and market conditions for optimal results.
Midpoint Line with Dynamic Bands, RSI Filter, and AlertsTitle: Midpoint Line with Dynamic Bands, RSI Filter, and Alerts
Description:
This Pine Script indicator provides a comprehensive analysis tool combining dynamic midpoint bands, RSI filtering, and alert conditions for overbought and oversold market states.
Features:
Dynamic Midpoint Bands:
Calculates the midpoint based on the highest high and lowest low over a user-defined lookback period.
Supports both percentage and fixed point offsets for the upper and lower bands.
Threshold Levels:
Defines overbought and oversold thresholds using a user-specified percentage.
RSI Filter:
Uses a 100-period RSI to filter market trends.
Plots candles in green if RSI > 50 and in red if RSI < 50.
Visual Overlays:
Fills the overbought area in red and the oversold area in green.
Plots green arrows below the bars when RSI > 50 and the price is in the oversold area.
Plots red arrows above the bars when RSI < 50 and the price is in the overbought area.
Alerts:
Generates alerts for potential long and short trading opportunities based on the defined conditions.
How to Use:
Customize the lookback period, percentage offset, fixed point offset, and threshold percentage as needed.
Use the RSI filter to identify the prevailing market trend.
Watch for visual signals (arrows) indicating potential buy or sell opportunities.
Set up alerts to receive notifications when long or short conditions are met.
This script provides traders with a robust tool for identifying key market conditions and making informed trading decisions. Customize the parameters to fit your trading strategy and use the visual cues and alerts to enhance your market analysis.
MTF Bollinger BandWidth [CryptoSea]The MTF Bollinger BandWidth Indicator is an advanced analytical tool crafted for traders who need to gauge market volatility and trend strength across multiple timeframes. This powerful indicator leverages the Bollinger BandWidth concept to provide a comprehensive view of price movements and volatility changes, making it ideal for those looking to enhance their trading strategies with multi-timeframe analysis.
Key Features
Multi-Timeframe Analysis: Allows users to monitor Bollinger BandWidth across various timeframes, providing a macro and micro perspective on market volatility.
Pivot Point Detection: Identifies crucial high and low pivot points, offering insights into potential support and resistance levels. Pivot points are dynamic and adjust based on the timeframe viewed, reflecting short-term fluctuations or longer-term trends.
Customizable Parameters: Includes options to adjust the length of the moving average, the standard deviation multiplier, and more, enabling traders to tailor the tool to their specific needs.
Dynamic Color Coding: Utilizes color changes to indicate different market conditions, aiding in quick visual assessments.
In the example below, notice how changes in BBW across different timeframes provide early signals for potential volatility increases or decreases.
How it Works
Calculation of BandWidth: Measures the percentage difference between the upper and lower Bollinger Bands, which expands or contracts based on market volatility.
High and Low Pivot Tracking: Automatically calculates and tracks the pivots in BBW values, which are critical for identifying turning points in market behavior. High and low levels will change depending on the timeframe, capturing distinct market behaviors from granular movements to broad trends.
Visual Alerts and Table Display: Highlights significant changes in BBW with visual alerts and provides a detailed table view for comparison across timeframes.
In the example below, BBW identifies a significant contraction followed by an expansion, suggesting a potential breakout.
Application
Strategic Market Entry and Exit: Assists traders in making well-informed decisions about when to enter and exit trades based on volatility cues.
Trend Strength Assessment: Helps in determining the strength of the prevailing market trend through detailed analysis of expansion and contraction periods.
Adaptable to Various Trading Styles: Suitable for day traders, swing traders, and long-term investors due to its customization capabilities and effectiveness across different timeframes.
The MTF Bollinger BandWidth Indicator is a must-have in the arsenal of traders who demand depth, accuracy, and responsiveness in their market analysis tools. Enhance your trading decisions by integrating this sophisticated indicator into your strategy to navigate the complexities of various market conditions effectively.
price action reversion bands - [SigmaStreet]█ OVERVIEW
The "Price Action Reversion Bands" is designed to help traders identify potential reversal zones through the integration of polynomial regression, fractal analysis, and pinbar detection. This tool overlays directly onto the price chart, providing dynamic visual cues and signals for market reversals. Its unique synthesis of these methodologies offers traders a powerful, multifaceted approach to market analysis.
█ CONCEPTS
Polynomial Regression Bands:
What It Does:
Models the main trend using a polynomial equation to create a middle trend line with dynamic support and resistance bands.
How It Works:
Calculates polynomial coefficients to plot a regression line and adjusts the bands according to market volatility and conditions.
Fibonacci Retracement Levels:
What It Does:
Provides additional lines inside the regression bands at key Fibonacci ratios to identify potential support and resistance areas.
How It Works:
Calculates retracement levels by identifying high and low points over the same period used to calculate the regression bands, applying Fibonacci ratios to these points.
Fractal Analysis:
What It Does: Identifies natural resistance and support levels, indicating potential reversal zones.
How It Works: Detects fractals based on a specific pattern of price action, using Williams Fractal methodology.
Pinbar Detection:
What It Does: Signals potential price reversals through pinbar candlestick patterns.
How It Works: Analyzes
candlesticks to identify pinbars which show a rejection of prices, suggesting possible reversals.
█ ORIGINALITY AND USEFULNESS
The price action reversion bands distinguishes itself through its innovative integration of several advanced analytical methods, providing traders with a holistic view of potential market reversals:
Unique Combination:
While many tools use these techniques in isolation, this indicator synergistically combines polynomial regression, Fibonacci retracement levels, fractal analysis, and pinbar detection. This multi-faceted approach allows traders to assess strength, potential reversal zones, and price rejection more effectively than using traditional single-method indicators.
Advanced Polynomial Regression Application:
Unlike standard regression tools that offer static insights, this indicator dynamically adjusts its regression bands based on real-time market volatility, providing a more accurate reflection of market conditions.
Enhanced Signal Reliability:
By using fractals and pinbars in conjunction to validate each other, the indicator significantly increases the reliability of its reversal signals. This dual-validation method filters out less probable signals, focusing on high-probability trading opportunities.
Customization and Flexibility:
It offers unprecedented customization options, allowing traders to fine-tune the tool according to their trading style and market conditions. Traders can adjust the polynomial degree, the sensitivity of the Fibonacci retracements, and even the definition of what constitutes a significant pinbar, making it highly adaptable to various trading scenarios.
Educational Value:
The indicator not only aids in trading but also serves as an educational tool that helps traders understand the interaction between different types of market analysis techniques. This contributes to a deeper knowledge base and better trading decisions over time.
These distinctive features make the "Price Action Reversion Bands - " not just another indicator but a comprehensive trading tool that enhances decision-making through a well-rounded analysis of market dynamics.
█ HOW TO USE
Installation and Setup:
Apply the indicator to your TradingView chart from the "Indicators" menu.
Select either polynomial regression or Fibonacci retracement as the basis for the bands through the indicator settings.
Reading the Indicator:
Monitor the approach of price to the upper and lower bands which indicate potential reversal zones.
Look for fractal and pinbar formations near these bands for additional signal confirmation.
Customization:
Adjust settings such as the polynomial degree, data window length, and engagement zones to tailor the bands to your trading style.
Modify visual aspects like color and line type for better clarity and personal preference.
█ FEATURES
Dynamic Adjustment:
Bands adjust in real-time based on incoming price data and selected settings.
Multiple Analysis Techniques: Combines several analytical techniques to provide a comprehensive view of potential market movements. The integration of polynomial regression with Fibonacci levels, supplemented by fractal and pinbar analysis, marks this tool as particularly innovative, offering a level of synthesis that enhances predictive accuracy and usability.
User-Friendly Customization: Allows for extensive customization to suit individual trading strategies and preferences.
█ LIMITATIONS
Market Dependency:
Performance may vary significantly across different markets and conditions.
Parameter Sensitivity: Requires fine-tuning of parameters to ensure optimal performance, which might demand a steep learning curve for new users.
█ NOTES
For best results, combine this tool with other forms of analysis, such as fundamental analysis and other technical indicators, to confirm signals and enhance decision-making.
█ THANKS
Special thanks to the PineCoders community the Pine Coders themselves for their foundational contributions to the concepts used in this script. Their pioneering work in the fields of technical analysis and Pine Script development has been invaluable. This script is a testament to the collaborative spirit of the TradingView developer community, integrating analytical techniques with innovative approaches to offer a tool that is both modern and cutting-edge.
TASC 2024.05 Ultimate Channels and Ultimate Bands█ OVERVIEW
This script, inspired by the "Ultimate Channels and Ultimate Bands" article from the May 2024 edition of TASC's Traders' Tips , showcases the application of the UltimateSmoother by John Ehlers as a lag-reduced alternative to moving averages in indicators based on Keltner channels and Bollinger Bands®.
█ CONCEPTS
The UltimateSmoother , developed by John Ehlers, is a digital smoothing filter that provides minimal lag compared to many conventional smoothing filters, e.g., moving averages . Since this filter can provide a viable replacement for moving averages with reduced lag, it can potentially find broader applications in various technical indicators that utilize such averages.
This script explores its use as the smoothing filter in Keltner channels and Bollinger Bands® calculations, which traditionally rely on moving averages. By substituting averages with the UltimateSmoother function, the resulting channels or bands respond more quickly to fluctuations with substantially reduced lag.
Users can customize the script by selecting between the Ultimate channel or Ultimate bands and adjusting their parameters, including lookback lengths and band/channel width multipliers, to fine-tune the results.
█ CALCULATIONS
The calculations the Ultimate channels and Ultimate bands use closely resemble those of their conventional counterparts.
Ultimate channel:
Apply the Ultimate smoother to the `close` time series to establish the basis (center) value.
Calculate the smooth true range (STR) by applying the UltimateSmoother function with a user-specified length instead of a rolling moving average, thus replacing the conventional average true range (ATR). Users can adjust the final STR value using the "Width multiplier" input in the script's settings.
Calculate the upper channel value by adding the multiplied STR to the basis calculated in the first step, and calculate the lower channel value by subtracting the multiplied STR from the basis.
Ultimate bands:
Apply the Ultimate smoother to the `close` time series to establish the basis (center) value.
Calculate the width of the bands by finding the square root of the average of individual squared deviations over the specified length, then multiplying the result by the "Width multiplier" input value.
Calculate the upper band by adding the resulting width to the basis from the first step, and calculate the lower band by subtracting the width from the basis.
Bollinger Bands Heatmap (BBH)The Bollinger Bands Heatmap (BBH) Indicator provides a unique visualization of Bollinger Bands by displaying the full distribution of prices as a heatmap overlaying your price chart. Unlike traditional Bollinger Bands, which plot the mean and standard deviation as lines, BBH illustrates the entire statistical distribution of prices based on a normal distribution model.
This heatmap indicator offers traders a visually appealing way to understand the probabilities associated with different price levels. The lower the weight of a certain level, the more transparent it appears on the heatmap, making it easier to identify key areas of interest at a glance.
Key Features
Dynamic Heatmap: Changes in real-time as new price data comes in.
Fully Customizable: Adjust the scale, offset, alpha, and other parameters to suit your trading style.
Visually Engaging: Uses gradients of colors to distinguish between high and low probabilities.
Settings
Scale
Tooltip: Scale the size of the heatmap.
Purpose: The 'Scale' setting allows you to adjust the dimensions of each heatmap box. A higher value will result in larger boxes and a more generalized view, while a lower value will make the boxes smaller, offering a more detailed look at price distributions.
Values: You can set this from a minimum of 0.125, stepping up by increments of 0.125.
Scale ATR Length
Tooltip: The ATR used to scale the heatmap boxes.
Purpose: This setting is designed to adapt the heatmap to the instrument's volatility. It determines the length of the Average True Range (ATR) used to size the heatmap boxes.
Values: Minimum allowable value is 5. You can increase this to capture more bars in the ATR calculation for greater smoothing.
Offset
Tooltip: Offset mean by ATR.
Purpose: The 'Offset' setting allows you to shift the mean value by a specified ATR. This could be useful for strategies that aim to capitalize on extreme price movements.
Values: The value can be any floating-point number. Positive values shift the mean upward, while negative values shift it downward.
Multiplier
Tooltip: Bollinger Bands Multiplier.
Purpose: The 'Multiplier' setting determines how wide the Bollinger Bands are around the mean. A higher value will result in a wider heatmap, capturing more extreme price movements. A lower value will tighten the heatmap around the mean price.
Values: The minimum is 0, and you can increase this in steps of 0.2.
Length
Tooltip: Length of Simple Moving Average (SMA).
Purpose: This setting specifies the period for the Simple Moving Average that serves as the basis for the Bollinger Bands. A higher value will produce a smoother average, while a lower value will make it more responsive to price changes.
Values: Can be set to any integer value.
Heat Map Alpha
Tooltip: Opacity level of the heatmap.
Purpose: This controls the transparency of the heatmap. A lower value will make the heatmap more transparent, allowing you to see the price action more clearly. A higher value will make the heatmap more opaque, emphasizing the bands.
Values: Ranges from 0 (completely transparent) to 100 (completely opaque).
Color Settings
High Color & Low Color: These settings allow you to customize the gradient colors of the heatmap.
Purpose: Use contrasting colors for better visibility or colors that you prefer. The 'High Color' is used for areas with high density (high probability), while the 'Low Color' is for low-density areas (low probability).
Usage Scenarios for Settings
For Volatile Markets: Increase 'Scale ATR Length' for better smoothing and set a higher 'Multiplier' to capture wider price movements.
For Trend Following: You might want to set a larger 'Length' for the SMA and adjust 'Scale' and 'Offset' to focus on more probable price zones.
These are just recommendations; feel free to experiment with these settings to suit your specific trading requirements.
How To Interpret
The heatmap gives a visual representation of the range within which prices are likely to move. Areas with high density (brighter color) indicate a higher probability of the price being in that range, whereas areas with low density (more transparent) indicate a lower probability.
Bright Areas: Considered high-probability zones where the price is more likely to be.
Transparent Areas: Considered low-probability zones where the price is less likely to be.
Tips For Use
Trend Confirmation: Use the heatmap along with other trend indicators to confirm the strength and direction of a trend.
Volatility: Use the density and spread of the heatmap as an indication of market volatility.
Entry and Exit: High-density areas could be potential support and resistance levels, aiding in entry and exit decisions.
Caution
The Bollinger Bands Heatmap assumes a normal distribution of prices. While this is a standard assumption in statistics, it is crucial to understand that real-world price movements may not always adhere to a normal distribution.
Conclusion
The Bollinger Bands Heatmap Indicator offers traders a fresh perspective on Bollinger Bands by transforming them into a visual, real-time heatmap. With its customizable settings and visually engaging display, BBH can be a useful tool for traders looking to understand price probabilities in a dynamic way.
Feel free to explore its features and adjust the settings to suit your trading strategy. Happy trading!
EMA Power BandsHello!
Today, I am delighted to introduce you to the "EMA Power Bands" indicator, designed to assist in identifying buying and selling points for assets moving in the markets.
Key Features of the Indicator:
EMA Bands: "EMA Power Bands" utilizes Exponential Moving Average (EMA) to create trend lines. These bands automatically expand or contract based on the price trend, adapting to market conditions.
ATR-Based Volatility: The indicator measures price volatility using the Average True Range (ATR) indicator, adjusting the width of the EMA bands accordingly. As a result, wider bands form during periods of increased volatility, while they narrow during lower volatility.
RSI-Based Buy-Sell Signals: "EMA Power Bands" uses the Relative Strength Index (RSI) to identify overbought and oversold zones. Entering the overbought zone generates a sell signal, while entering the oversold zone produces a buy signal.
Trend Direction Identification: The indicator assists in determining the price trend direction by analyzing the slope of the EMA bands. This allows you to identify periods of uptrends and downtrends.
Visualization of Buy-Sell Signals: "EMA Power Bands" visually marks the buy and sell signals:
- When RSI enters the overbought zone, it displays a sell signal (🪫).
- When RSI enters the oversold zone, it indicates a buy signal (🔋).
- When a candle closes above the emaup line, it displays a bearish signal (🔨).
- When a candle closes below the emadw line, it indicates a bullish signal (🚀).
By using the "EMA Power Bands" (EMA Güç Bantları) indicator, especially in trend-following strategies and periods of volatility, you can make more informed and disciplined trading decisions. However, I recommend using it in conjunction with other technical analysis tools and fundamental data.
*You can also use it with CCI as an example.
With this indicator, you can identify potential trend reversals in advance and strengthen your risk management strategies.
So, go ahead and try the "EMA Power Bands" (EMA Güç Bantları) indicator to enhance your technical analysis skills and make more informed trading decisions!
Bollinger Bands Weighted Alert System (BBWAS)The idea of this indicator is very similar to my previous published script called BBAS (Bollinger Bands Alert System).
Just with little additions. In this case, we're using a Weighted Moving Average (ta.wma) instead of Simple Moving Average to calculate the basis line.
A breakout in trading refers to a situation where the price of a security or asset moves beyond a defined level of support or resistance, which is typically indicated by technical analysis tools like Bollinger Bands. Bollinger Bands consist of three lines: the upper band, the lower band, and the middle band (or basis). The upper and lower bands are set at a specified number of standard deviations away from the middle band, and they help to define the range within which the price of an asset is expected to fluctuate.
When the price of the asset moves beyond the upper or lower band, it is said to have "broken out" of the range. If the price closes below the lower band, it is considered a bearish breakout, and if it closes above the upper band, it is considered a bullish breakout.
Once a breakout occurs, traders may look for a confirmation signal before entering a trade. In this case, crossing the middle line (or basis) after a breakout may signal a potential trend reversal and a good opportunity to enter a long or short trade, depending on the direction of the breakout.
Dear traders, while we strive to provide you with the best trading tools and resources, we want to remind you to exercise caution and diligence in your investing decisions.
It is important to always do your own research and analysis before making any trades. Remember, the responsibility for your investments ultimately lies with you.
Happy trading!
Keltner Channels Bands (RMA)Keltner Channel Bands
These normally consist of:
Keltner Channel Upper Band = EMA + Multiplier ∗ ATR
Keltner Channel Lower Band = EMA − Multiplier ∗ ATR
However instead of using ATR we are using RMA
This gives us a much smoother take of the KCB
We are also using 2 sets of bands built on 1 Moving average, this is a common set up for mean reversion strategies.
This can often be paired with RSI for lower timeframe divergences
Divergence
This is using the RSI to calculate when price sets new lows/highs whilst the RSI movement is in the opposite direction.
The way this is calculated is slightly different to traditional divergence scripts. instead of looking for pivot highs/lows in the RSI we are logging the RSI value when price makes it pivot highs/lows.
Gradient Bands
The Gradient Colouring on the bands is measuring how long price has been either side of the MA.
As Keltner bands are commonly used as a mean reversion strategy, I thought it would be useful to see how long price has been trending in a certain direction, the stronger the colours get,
the longer price has been trending that direction which could suggest we are looking for a retrace soon.
Alerts
Alerts included let you choose whether you want to receive an alert for the inside, outside or both band touches.
To set up these alerts, simply toggle them on in the settings, then click on the 3 dots next to the indicators name, from there you click 'Add Alert'.
From there you can customise the alert settings but make sure to leave the 2 top boxes which control the alert conditions. They will be default selected onto your correct settings, the rest you may want to change.
Once you create the alert, it will then trigger as soon as price touches your chosen inside/outside band.
Suggestions
Please feel free to offer any suggestions which you think could improve the script
Disclaimer
The default settings/parameters were shared by Jimtalbott, feel free to play about with the and use this code to make your own strategies.
Bollinger BandsThis strategy is inspired from Power of Stock aka Subhasish Panni.
Target is minimum 1:3 when you get this setup right.
Buy when:
1) Low is greater than upper band of BB and next candle breaks high of that candle, SL is Low of previous candle which is has low above upper band.
2) High is lower than lower band of BB and next candle breaks high of that candle, SL is low of previous candle which has high lower than lower band.
Sell when:
1) Low is greater than upper band of BB and next candle breaks low of that candle, SL is high of previous candle which is has low above upper band.
2) High is lower than lower band of BB and next candle breaks high of that candle, SL is high of previous candle which has high lower than lower band.
Disclaimer: this setup will cause many small stoploss hit, you have to accept that loss but you will be profitable because of R:R.
VWAP BANDS [qrsq]Description
This indicator is used to find support and resistance utilizing both buying and selling volume. It can be used on lower and higher time frames to understand where price is likely to reject or bounce.
How it works
Instead of calculating the VWAP using the total volume, this script estimates the buying/selling volume and respectively calculates their individual VWAP's. The standard deviations of these are then calculated to create the set of two bands. The top bands being the VWAP from buying volume and bottom bands are from selling volume, with the option to use a double band on either pair.
How to use it
I like to use the bands for LTF scalping as well as HTF swings, I also like to use it alongside my SMA VWAP BANDS.
For scalping:
I tend to use either the 5m or 15m TF
I then set the indicator's TF to 1m
I will take a scalp based on the bands confluence with other PA methods, if price is being either supported or rejected.
For swings:
I tend to use a variety of TFs, including: 30m, 1H, 4H, D
I then set the indicator's TF to "Chart"
I will take a swing based on the bands confluence with other PA methods, if price is being either supported or rejected.
I also tend to use them on perpetual contracts as the volume seems to be more consistent and hence results in more accurate support and resistance.
Relative Bandwidth FilterThis is a very simple script which can be used as measure to define your trading zones based on volatility.
Concept
This script tries to identify the area of low and high volatility based on comparison between Bandwidth of higher length and ATR of lower length.
Relative Bandwidth = Bandwidth / ATR
Bandwidth can be based on either Bollinger Band, Keltner Channel or Donchian Channel. Length of the bandwidth need to be ideally higher.
ATR is calculated using built in ATR method and ATR length need to be ideally lower than that used for calculating Bandwidth.
Once we got Relative Bandwidth, the next step is to apply Bollinger Band on this to measure how relatively high/low this value is.
Overall - If relative bandwidth is higher, then volatility is comparatively low. If relative bandwidth is lower, then volatility is comparatively high.
Usage
This can be used with your own strategy to filter out your non-trading zones based on volatility. Script plots a variable called "Signal" - which is not shown on chart pane. But, it is available in the data window. This can be used in another script as external input and apply logic.
Signal values can be
1 : Allow only Long
-1 : Allow only short
0 : Do not allow any trades
2 : Allow both Long and Short
BandPass EOS - 1hThis is a strategy i made for EOS
Opens a long position if the PB line (the red line in the oscillator) crossover the low of the band, the zero line or the top of the band.
If the PB line makes a crossunder in the top of the band, the zero line or the bottom of the band it closes the long position and immediately opens a short position.
Also, the PB value must be higher than 5 candles before if it is a long position and PB must be lower than 5 candles before to open a short position
I got the BandPass Script from www.tradingview.com and made some changes in the configs to adapt the strategy.
If someone has any doubt i can answer below
Super-Elliptic BandsThe core of the "Super-Elliptic Bands" indicator lies in its use of a super-ellipse mathematical model to create dynamic price bands around a central Simple Moving Average (SMA). Here's a concise breakdown of its essential components:
Central Moving Average (MA):
A Simple Moving Average (ta.sma(close, maLen)) serves as the baseline, anchoring the bands to the average price over a user-defined period (default: 50 bars).
Super-Ellipse Formula:
The bands are generated using the super-ellipse equation: |y/b| = (1 - |x/a|^p)^(1/p), where:
x is a normalized bar index based on a user-defined cycle period (periodBase, default: 64), scaled to range from -1 to +1.
a = 1 (fixed semi-major axis).
b is the volatility-based semi-minor axis, calculated as volRaw * mult, where volRaw comes from ta.stdev, ta.atr, or ta.tr (user-selectable).
p (shapeP, default: 2.0) controls the band shape:
p = 2: Elliptical bands.
p < 2: Pointier, diamond-like shapes.
p > 2: Flatter, rectangular-like shapes.
This formula creates bands that dynamically adjust their width and shape based on price volatility and a cyclical component.
enjoy....
Volume-Weighted Pivot BandsThe Volume-Weighted Pivot Bands are meant to be a dynamic, rolling pivot system designed to provide traders with responsive support and resistance levels that adapt to both price volatility and volume participation. Unlike traditional daily pivot levels, this tool recalculates levels bar-by-bar using a rolling window of volume-weighted averages, making it highly relevant for intraday traders, scalpers, swing traders, and algorithmic systems alike.
-- What This Indicator Does --
This tool calculates a rolling VWAP-based pivot level, and surrounds that central pivot with up to five upper bands (R1–R5) and five lower bands (S1–S5). These act as dynamic zones of potential resistance (R) and support (S), adapting in real time to price and volume changes.
Rather than relying on static session or daily data, this indicator provides continually evolving levels, offering more relevant levels during sideways action, trending periods, and breakout conditions.
-- How the Bands Are Calculated --
Pivot (VWAP Pivot):
The core of this system is a rolling Volume-Weighted Average Price, calculated over a user-defined window (default 20 bars). This ensures that each bar’s price impact is weighted by its volume, giving a more accurate view of fair value during the selected lookback.
Volume-Weighted Range (VW Range):
The highest high and lowest low over the same window are used to calculate the volatility range — this acts as a spread factor.
Support & Resistance Bands (S1–S5, R1–R5):
The bands are offset above and below the pivot using multiples of the VW Range:
R1 = Pivot + (VW Range × multiplier)
R2 = R1 + (VW Range × multiplier)
R3 = R2 + (VW Range x multiplier)
...
S1 = Pivot − (VW Range × multiplier)
S2 = S1 − (VW Range × multiplier)
S3 = S2 - (VW Range x multiplier)
...
You can control the multiplier manually (default is 0.25), to widen or tighten band spacing.
Smoothing (Optional):
To prevent erratic movements, you can optionally toggle on/off a simple moving average to the pivot line (default length = 20), providing a smoother trend base for the bands.
-- How to Use It --
This indicator can be used for:
Support and resistance identification:
Price often reacts to R1/S1, and the outer bands (R4/R5 or S4/S5) act as overshoot zones or strong reversal areas.
Trend context:
If price is respecting upper bands (R2–R3), the trend is likely bullish. If price is pressing into S3 or lower, it may indicate sustained selling pressure or a breakdown.
Volatility framing:
The distance between bands adjusts based on price range over the rolling window. In tighter markets, the bands compress — in volatile moves, they expand. This makes the indicator self-adaptive.
Mean reversion trades:
A move into R4/R5 or S4/S5 without continuation can be a sign of exhaustion — potential for reversal toward the pivot.
Alerting:
Built-in alerts are available for crosses of all major bands (R1–R5, S1–S5), enabling trade automation or scalp alerts with ease.
-- Visual Features --
Fuchsia Lines: Mark all Resistance (R1–R5) levels.
Lime Lines: Mark all Support (S1–S5) levels.
Gray Circle Line: Marks the rolling pivot (VWAP-based).
-- Customizable Settings --
Rolling Length: Number of bars used to calculate VWAP and VW Range.
Multiplier: Controls how wide the bands are spaced.
Smooth Pivot: Toggle on/off to smooth the central pivot.
Pivot Smoothing Length: Controls how many bars to average when smoothing is enabled.
Offset: Visually shift all bands forward/backward in time.
-- Why Use This Over Standard Pivots? --
Traditional pivots are based on previous session data and remain fixed. That’s useful for static setups, but may become irrelevant as price action evolves. In contrast:
This system updates every bar, adjusting to current price behavior.
It includes volume — a key feature missing from most static pivots.
It shows multiple bands, giving a full view of compression, breakout potential, or trend exhaustion.
-- Who Is This For? --
This tool is ideal for:
Day traders & scalpers who need relevant intraday levels.
Swing traders looking for evolving areas of confluence.
Algorithmic/systematic traders who rely on quantifiable, volume-aware support/resistance.
Traders on all assets: works on crypto, stocks, futures, forex — any chart that has volume.
Waldo Cloud Bollinger Bands
Waldo Cloud Bollinger Bands Indicator Description for TradingView
Title: Waldo Cloud Bollinger Bands
Short Title: Waldo Cloud BB
Overview:
The Waldo Cloud Bollinger Bands indicator is a sophisticated tool designed for traders looking to combine the volatility analysis of Bollinger Bands with the momentum insights of the Relative Strength Index (RSI) and moving average crossovers. This indicator overlays on your chart, providing a visual representation that helps in identifying potential trading opportunities based on price action, momentum, and trend direction.
Concept:
This indicator merges three key technical analysis concepts:
Bollinger Bands: These are used to measure market volatility. The bands consist of a central moving average (basis) with an upper and lower band that are standard deviations away from this average. In this indicator, you can customize the type of moving average used for the basis (SMA, EMA, SMMA, WMA, VWMA), the length of the period, the source price, and the standard deviation multiplier, offering flexibility to adapt to different market conditions.
Relative Strength Index (RSI): The RSI is incorporated to provide insight into the momentum of price movements. Users can adjust the RSI length and overbought/oversold levels and even choose the price source for RSI calculation, allowing for tailored momentum analysis. The RSI values influence the cloud color between the Bollinger Bands, signaling market conditions.
Moving Average Crossovers: Two moving averages with customizable lengths and types are used to identify trend direction through crossovers. A fast MA (default 20 periods) and a slow MA (default 50 periods) are plotted when enabled, helping to signal potential bullish or bearish market conditions when they cross over each other.
Functionality:
Bollinger Bands Calculation: The basis of the Bollinger Bands is calculated using a user-defined moving average type, with a customizable length, source, and standard deviation multiplier. The upper and lower bands are then plotted around this basis.
RSI Calculation: The RSI is computed using a user-specified source, length, and overbought/oversold levels. This RSI value is used to determine the color of the cloud between the Bollinger Bands, which visually represents market sentiment:
Purple when RSI is overbought.
Blue when RSI is oversold.
Green for bullish conditions (when the fast MA crosses above the slow MA, RSI is bullish, and the price is above the slow MA).
Red for bearish conditions (when the fast MA crosses below the slow MA, RSI is bearish, and the price is below the slow MA).
Gray for neutral conditions.
Trend Analysis: The indicator uses two moving averages to help determine the trend direction.
When the fast MA crosses over the slow MA, it suggests a potential change in trend direction, which, combined with RSI conditions, provides a more comprehensive trading signal.
Customization:
Users can select the type of moving average for all calculations through the "Global MA Type" setting, ensuring consistency in how trends and volatility are interpreted.
The Bollinger Bands settings allow for adjustments in length, source, standard deviation, and offset, giving traders control over how volatility is measured.
RSI settings include the ability to change the RSI source, length, and overbought/oversold thresholds, which can be fine-tuned to match trading strategies.
The option to show or hide moving averages provides clarity on the chart, focusing on either the Bollinger Bands or including the MA crossovers for trend analysis.
Usage:
This indicator is ideal for traders who incorporate both volatility and momentum in their trading decisions.
By observing the color changes in the cloud, along with the position of the price relative to the moving averages, traders can gauge potential entry and exit points.
For instance, a green cloud with a price above the slow MA might suggest a strong buying opportunity, while a red cloud with a price below might indicate selling pressure.
Conclusion:
The Waldo Cloud Bollinger Bands indicator offers a unique blend of volatility, momentum, and trend analysis, providing traders with a multi-faceted view of market conditions. Its customization options make it adaptable to various trading styles and market environments, making it a valuable addition to any trader's toolkit on Trading View.
ka66: Bar Range BandsThis tool takes a bar's range, and reflects it above the high and below the low of that bar, drawing upper and lower bands around the bar. Repeated for each bar. There's an option to then multiply that range by some multiple. Use a value greater than 1 to get wider bands, and less than one to get narrower bands.
This tool stems out of my frustration from the use of dynamic bands (like Keltner Channels, or Bollinger Bands), in particular for estimating take profit points.
Dynamic bands work great for entries and stop loss, but their dynamism is less useful for a future event like taking profit, in my experience. We can use a smaller multiple, but then we can often lose out on a bigger chunk of gains unnecessarily.
The inspiration for this came from a friend explaining an ICT/SMC concept around estimating the magnitude of a trend, by calculating the Asian Session Range, and reflecting it above or below on to the New York and London sessions. He described this as standard deviation of the Asian Range, where the range can thus be multiplied by some multiple for a wider or narrower deviation.
This, in turn, also reminded me of the Measured Move concept in Technical Analysis. We then consider that the market is fractal in nature, and this is why patterns persist in most timeframes. Traders exist across the spectrum of timeframes. Thus, a single bar on a timeframe, is made up of multiple bars on a lower timeframe . In other words, when we reflect a bar's range above or below itself, in the event that in a lower timeframe, that bar fit a pattern whose take profit target could be estimated via a Measured Move , then the band's value becomes a more valid estimate of a take profit point .
Yet another way to think about it, by way of the fractal nature above, is that it is essentially a simplified dynamic support and resistance mechanism , even simpler than say the various Pivot calculations (e.g. Classical, Camarilla, etc.).
This tool in general, can also be used by those who manually backtest setups (and certainly can be used in an automated setting too!). It is a research tool in that regard, applicable to various setups.
One of the pitfalls of manual backtesting is that it requires more discipline to really determine an exit point, because it's easy to say "oh, I'll know more or less where to exit when I go live, I just want to see that the entry tends to work". From experience, this is a bad idea, because our mind subconsciously knows that we haven't got a trained reflex on where to exit. The setup may be decent, but without an exit point, we will never have truly embraced and internalised trading it. Again, I speak from experience!
Thus, to use this to research take profit/exit points:
Have a setup in mind, with all the entry rules.
Plot your setup's indicators, mark your signals.
Use this indicator to get an idea of where to exit after taking an entry based on your signal.
Credits:
@ICT_ID for providing the idea of using ranges to estimate how far a trend move might go, in particular he used the Asian Range projected on to the London and New York market sessions.
All the technicians who came up with the idea of the Measured Move.
