In this Trending Bands script you will see two bands drawn on chart. The Upper band is suggestive of Uptrend and Lower Band is suggestive of Downtrend Market. It just provides the guidance of where the market is now and where it is headed. It is not to be used as a standalone indicator. Use this to confirm your hypothesis of Uptrend or Downtrend.
Bollinger Bands Trend
When the price crosses the moving average it is interpreted as the price is gonna continue in that direction. But most of the time it is a fake breakout. With this script you get an additional confirmation so that you know it is not a fake breakout and the price have caught the trend.
Bollinger Bands Reversal:
This indicator can also work for reversal. For example when price closes outside the outer bands, it is most likely that the trend is gonna reverse. Don't just enter the trade wait for some other confirmation as reversal trading is more complicated.
Confluence is the key factor for profitable trading. Don't use this indicator as standalone indicator instead combine it with other indicators and price action. Like the divergence occurring when the price is outside the bands is suggestive of trend reversal. I have created a non-delay, non-repaint indicator for finding divergence. I'd soon publish that script. Stay tuned.
Settings is the Key:
Try to play around with the settings. It is a simple yet effective indicator. Change the moving average type or length. I've found moving average RMA or works better than . Find the best setting that works with your setup. Set the Band Source as High/Low to make the outer bands more extreme.
This is my first script but it isn't my last. I've created quite a few gems that I'm gonna publish soon. If you have any questions or suggestions feel free to comment below. I'd love to connect with you. Thank you.
Dalam semangat TradingView, penulis dari skrip ini telah mempublikasikannya ke sumber-terbuka, maka trader dapat mengerti dan memverifikasinya. Semangat untuk penulis! Anda dapat menggunakannya secara gratis, namun penggunaan kembali kode ini dalam publikasi diatur oleh Tata Tertib. Anda dapat memfavoritkannya untuk digunakan pada chart
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