The logic of the script is confined within the lines 45 through 57. Lines 46 and 47 define an upper and a lower bands as well a direction of the current trend. Lines 49..55 define boolean terms for the long and short conditions.
The bothup and bothdown variables indicate if the direction of the bands coincides. The presqueeze variable tries to identify if the bands converge, and the widen variable does the opposite. The diff, prev and curr variables are obvious - they hold the difference value, the previous and the current values of the times series in question.
I am an advocate of open source and against those who publish their code with a lock icon. My code and ideas are aimd at people with critical thinking, who are able to take an informative and responsible decision when it comes to investing their funds. I do not guarantee that all of my ideas will perform well. As usual, they require a certain degree of your sound judgment. My final aim is to provide you with coding techniques that you could use in your own scripts and strategies.
The Following indicator/code IS NOT intended to be a formal investment advice or recommendation by the author, nor should be construed as such. Users will be fully responsible by their use regarding their own trading vehicles/assets.
The embedded code and ideas within this work are FREELY AND PUBLICLY available on the Web for NON LUCRATIVE ACTIVITIES and must remain as is.