Bollinger Bands are a technical trading tool created by John Bollinger in the early 1980s. They arose from the need for adaptive trading bands and the observation that volatility was dynamic, not static as was widely believed at the time.
Bollinger Bands are a technical indicator used to measure the volatility of an asset. They consist of a set of three bands plotted on a chart: a moving average in the middle, an upper band, and a lower band.
The middle band is typically a simple moving average (SMA) of the asset's price, and the upper and lower bands are typically set at a certain number of standard deviations above and below the middle band. The standard deviation is a measure of the asset's volatility, so the distance between the bands adjusts based on the asset's volatility.
Bollinger Bands are often used to identify overbought and oversold conditions, as well as potential breakouts and trend reversals. When the price of an asset touches or moves outside of the upper or lower bands, it can be a signal to buy or sell.
Traders also often use Bollinger Bands in combination with other indicators to confirm the strength and direction of a trend. For example, a trader might look for a breakout above the upper Bollinger Band as a buy signal, or a breakout below the lower Bollinger Band as a sell signal.
Overall, Bollinger Bands are a useful tool for identifying market volatility and can help traders make more informed decisions about their trades.
The Bollinger Bands from the Jackrabbit suite and modulus framework supports differential timeframe analysis and confirmational bias.
This is a complete reconceptualization of the Bollinger Bands. Bollinger Bands typically center around a central median. This version allows the upper and lower boundaries to have their own source and it maintains perfect polarity even when the lower boundary is above the upper boundary. The upper and lower medians can have independent moving averages, as can the smoothing averages for the upper and lower boundaries. This algorithm support 4 different moving averages in total.
Dynamic timeframes are supported. This is an updated view of AROON and supports traditional overbought/sold boundaries and cross over regions.
The main indicatior and the confirmational indicator can both be
individually tuned for the fast, and slow moving averages with different and
independent lengths and many different moving average types:
The Jackrabbit modulus framework is a plug in play paradigm built to operate through TradingView's indicator on indicatior (IoI) functionality. As such, this script receives a signal line from the previous script in the IoI chain, and evaluates the buy/sell signals appropriate to the current analysis. The results are either combined with the signal line, or used as confirmation to the signal line. A new signal line is generated for the next script in the link.
Buy/Sell alerts are produced, but this script is not designed or meant to function outside my framework. By default, the signal line is visible and the charts are turned off. Signal line visibility is controlled by the Style tab, and the charts display is controlled by the indicator settings tab.
This script is part of a subscription along with 20 other scripts that make up Jackrabbit TV. For more information, please visit my patreon site.
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