Bollinger Bands with ATR SL Hariss 369

Bollinger Bands are a popular technical analysis tool developed by John Bollinger. They consist of three lines plotted on a price chart:

Middle Band – a simple moving average (usually 20 periods).

Upper Band – the middle band plus two standard deviations.

Lower Band – the middle band minus two standard deviations.

Key Features:

Volatility Indicator: The bands expand when volatility increases and contract when volatility decreases.

Trend Analysis: Prices near the upper band indicate overbought conditions, while prices near the lower band indicate oversold conditions.

Trading Signals: Traders often look for price touches, breaks, or rebounds from the bands to identify potential entries or exits.

To strengthen the trend quality RVOL has been considered. The ideal value of RVOL is 1.5

Higher Time Frame Trend filter gives trend clarity in higher time frame. One can select RVOL and HTF (Higher Time Frame) filter.

Bollinger bands indicator is basically a trend following indicator. We should go with the trend rather book profit 1:1 or 1:2 basis. In that case we might miss the long trend. The middle band is generally considered as stop loss. However, ATR based stop loss has been designed in the script in order to capture the volatility in decent way.

Break out signal is initiated on break out with volume taking higher time frame into consideration.

One can use this indicator in any time frame and any class of asset. To filter higher time frame eg. entry / exit 5 min chart, 15m/1h can be taken as higher time frame, for 1h entry/ exit, 4h can be taken as higher time frame trend filter.