Bridge Bands are an implementation of the work done by Joe Catanzaro (joecat808) to produce a risk range for a security.
The basic idea is to calculate Mandelbrot's "Bridge Range". (Pg. 179 of Misbehavior of Markets)
It then calculates Bollinger Bands.
Then next step is to calculate the Hurst Exponent.
The last step is to merge the Bridge Range and the Bollinger Bands. The basic concept is if H = .5 we use the Bollinger Bands and the farther away we move from .5 in either direction the Bridge Range takes more precedent.
There is a Trend value that is the mid-point of a 3 month Donchian Channel. If price is above we're bullish, if price is below we're bearish.
Lastly, there is also an option info box with data regarding the underlying's position within the range, as well as an experimental position size calculation.
Fixed issue with tickers like US10Y or COPPER where there were huge spikes in the range that would make the chart unreadable.
Catatan Rilis
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Added a trade signal plot. It show's as circles. Calculation is the same as the trend plot just on a shorter duration, which is configurable.
Added a yes/no parameter to turn color coding of the info box on.
If on, colors are as follows: - yellow: bullish, price is top quartile of range, asset does not have one month momentum and volume is decelerating - pink: bullish, price is bottom quartile of range, asset does have one month momentum and volume is decelerating - orange: bullish, price is bottom half of range - green: none of above conditions met - red: bearish
Catatan Rilis
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Change info box orange color code to blue.
Catatan Rilis
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Two updates:
1. Added two additional trend signal methods. Existing option is title Donchian. Momentum is simply if the asset has positive price momentum over the lookback period. RSI is if the RSI is greater than the Trend RSI Threshold value. Default threshold is 50. 2. Added a Trend Confirmation Length input parameter. This basically says the trend signal has to be bearish for this many days to signal bearish, otherwise bullish.
Default values for the two new inputs are Donchian and 1 and will cause no change to current behavior.
Catatan Rilis
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Added a fourth Trend Signal Method of VixFix. It is basically bullish if the VixFix is below it's Trend line, and bearish if above.
I also made it so the Donchian Trend line will show when using RSI of VixFix for the Trend Signal Method, just for a point of reference. If this causes confusion, you should be able to hide Trend plot in the appearance settings of the indicator.
Catatan Rilis
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Converted info box into table anchored in the top right corner. Much easier to see various color-coded metrics.
Added marker plots for HHs, HLs, etc over in the range over a specified lookback period
Added input parameters for bullish, bearish and text colors
Catatan Rilis
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Added optional plots to show the bridge range and bollinger bands that the bridge bands are created from
Can you explain how hour, days, weeks, compares to trade, trend, and tail duration on this indicator? Thanks!
evanevansmusic
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How do you use this for trading? I understand the position sizing and bullish/bearish. But what is a good entry signal point and what is a good ext signal point? What are the trading rules that go with this indicator? Many thanks for your hard work!
siemsons2
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hi,
Found the link in the HE Arena. Great Script!! I‘m Not on Facebook...is there another Way to See the Video?
Best Chris
reasonableFrie80708
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Caleb,
Thanks to you and Joe Catanzaro for building this. It really helps approximate the Hedgeye risk range and gives you something to work off of.
I noticed a few of the charts will have the range spike out in a wild manner that I don't think is intended. An example of this would be on the daily chart for CUT 2/19/21and 3/10/21 the range balloons out and then comes right back in the next day.
I wish I was good enough with pine script to go through and figure out what was causing it.
Thanks again,
Joe
jbmia
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Thanks for sharing! Definitely going to give this a test drive.
mscvinita
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Nice information .. Couldsome one please help to find any tutorial video //How to use this Bridge bands ? I am not able to find any information
b6d1016fdeb149be865b678a8ac935
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Amazing features rolled into a single indicator. Thank you.
Is it possible to modify how the trade dots display so that price candles don't cover them up?
romao92
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you guys are Rock Stars....my head just exploded looking at that code!!!
bulldust
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love this indicator but really want to get rid of the background color and have tried everything. is there any way to do this? thank you