█ Overview The SuperBollingerTrend indicator is a combination of two popular technical analysis tools, Bollinger Bands, and SuperTrend. By fusing these two indicators, SuperBollingerTrend aims to provide traders with a more comprehensive view of the market, accounting for both volatility and trend direction. By combining trend identification with volatility analysis, the SuperBollingerTrend indicator provides traders with valuable insights into potential trend changes. It recognizes that high volatility levels often accompany stronger price momentum, which can result in the formation of new trends or the continuation of existing ones.
█ How Volatility Impacts Trends Volatility can impact trends by expanding or contracting them, triggering trend reversals, leading to breakouts, and influencing risk management decisions. Traders need to analyze and monitor volatility levels in conjunction with trend analysis to gain a comprehensive understanding of market dynamics.
█ How to use Trend Reversals: High volatility can result in more dramatic price fluctuations, which may lead to sharp trend reversals. For example, a sudden increase in volatility can cause a bullish trend to transition into a bearish one, or vice versa, as traders react to significant price swings.
Volatility Breakouts: Volatility can trigger breakouts in trends. Breakouts occur when the price breaks through a significant support or resistance level, indicating a potential shift in the trend. Higher volatility levels can increase the likelihood of breakouts, as they indicate stronger market momentum and increased buying or selling pressure. This indicator triggers when the volatility increases, and if the price is near a key level when the indicator alerts, it might trigger a great trend.
█ Features Peak Signal Move The indicator calculates the peak price move for each ZigZag and displays it under each signal. This highlights how much the market moved between the signals.
Average ZigZag Move All price moves between two signals are stored, and the average or the median is calculated and displayed in a table. This gives traders a great idea of how much the market moves on average between two signals.
Take Profit The Take Profit line is placed at the average or the median price move and gives traders a great idea of what they can expect in average profit from the latest signals.
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@santoshmanju48, Thank you for your comment. I understand what you're saying about the indicator producing false signals, however, I believe there may be some misunderstanding about how this indicator works. This indicator is based on Bollinger Bands, triggering a signal when volatility increases, characterized by sudden and rapid price movements. Such price movements, which are often large and bold, are typically followed by a pullback, a common market behavior. This insight suggests that the signals don't predict the market trend; rather, they merely indicate the direction of the market's volatility and plot a super trend based on that. This tool is beneficial for understanding volatility dynamics and its potential impact on the overall market.
Find a strategy that reflects how the indicator works, and you will have a great trading setup.
KageTrader
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if you copied someone's work please give credit to the real main man behind the script. "Buy Sell Magical Trend by nicolas"
Zeiierman
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@KageTrader, Hey, thanks for your comment! Let me simplify my explanation of this indicator. The Supertrend is a popular indicator with many variations, often based on different conditions like ATR, Bollinger Bands, RSI, CCI, Zig Zag, pivots, or anything. There's a vast range of combinations for triggering trend change signals, so uniqueness is hard to come by.
This particular indicator combines Bollinger Bands and Supertrend to calculate ZigZag movements between signals. It then determines the average and median ZigZag move and generates take-profit levels, and displays the average/median move a trader can expect between the signals. I haven't seen this feature before, and I thought it would be useful.
While the combination of Supertrend and Bollinger Bands isn't unique, we could have used any other indicators with different trigger conditions. A possible improvement could be allowing users to choose their preferred indicator to base the Supertrend on and calculate the average ZigZag price move accordingly.
Many similar indicators might have already been developed, but we published ours to inspire and provide a fresh perspective on using the Average/Median ZigZag move for take-profit levels. It also helps traders understand the average move they can expect between signals, adding more depth to the indicator.
I am committed to not copying others' work and will always aim to offer innovative and valuable features by integrating them with established proven indicators.
@HeWhoMustNotBeNamed, Absolutely, the Super Trend indicator can certainly be refined and further developed. It's our imagination that sets the limit. We can enhance the super trend precision and overall effectiveness by continuing to explore and innovate. Thanks for sharing your work. :) I would like to develop an innovative super trend together.
Have a great day
IslandTrader2019
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There is only one Mr. Z!! This indicator is brilliant! Thanks for all you do <3
Zeiierman
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@IslandTrader2019, Yeah! I'm glad to contribute to the trading community. <3