Bollinger Bands shown with a horizontal basis, to make it easier to see how volatility is changing and identify squeeze opportunities.
There is a histogram (purple) which shows how the basis is changing, and a price line (yellow) showing the location of the price within the bollinger bands.
It is tuned to 2 STDEV, but shows the area within 1 STDEV a different color to help visualize when the price is near the extremes of the bands.
By default this uses an exponential moving average to calculate the bollinger basis, but this can be changed in the options.
Release Notes
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Made it so the inner bollinger envelope multiple can be modified, and added an optional alternate calculation for stdev which uses the two-pass algorithm which I believe is more accurate than the builtin. Default options are to enable the custom stdev implementation and use EMA for the bollinger basis.
Release Notes
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Updating to apply a scale factor while calculating the bollinger mean and deviation to increase precision with tiny cryptocurrency exchange rates.
I am trying to accomplish something similar for a different purpose where all the bands are fixed horizontally at 100 , 0 , and -100 any idea how to code this ?
@phohat, Glad you like it! If you have any requests let me know. :)
sclark39
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One extra note about this: if you use EMA to calculate the Bollinger Basis, technically the STDEV is supposed to use EMA as well. I've not been able to figure out how Pine calculates its STDEV yet though (it's not the same as excel), so I'm not sure it is too important. I'm working on reverse engineering it, though.
sclark39
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The update to this indicator has fixed this.
Acel
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Hey, nice approach! I was thinking of making a few modifications, is there place where i can learn more about this scrypt language?
The one thing that tripped me up for a bit is that when you hit version 10 of a script everything breaks and you need to hit Save As... remove from your chart, and add back the new V1.
I have noticed that too - breaking on v10 - when i was messing with VFI, very annoying when you need to test the changes. Hopefully i will have something by the weekend.