Referred to the book "Bollinger on Bollinger Bands" The best use of BB is to wait for squezze and breakout to capture the start of the trend.
Here the signal and target profit. 1. Long Signal when the close crosses above the upper BB and the Bandwidth of current bar exceeds 1.25 times of the previous bar (Volatility expands). : Green Triangle Up 2. Short Signal when the close crosses down the lower BB and the the Bandwidth of current bar exceeds 1.25 times of the previous bar (Volatility expands). : Red Triangle Down 3, Long TP when the upper BB turns down. : X cross Red 4. Short TP when the lower BB turns up. : X cross Purple
You can adjust any input of BB as well as how many times bandwidth changes from previous period. I filter out the to high to buy signal by using ADX, if ADX over 50, the buy signal will be omitted. As well as the TP signal , If the ADX is to low <35 , meaning it's has more room to go. the TP signal to be omitted. Anyway , user can adjust all of this sensitivity.
As this is the trend following indicator, you will experience the bad signal during the sideways. That's life.
This is the semi discretionary system. You can use as a guideline along side with your other methods and money management.
Hi! I was looking for an indicator that would highlight when the price crosses the Bollinger band, indicating a possible reversal. Your script will do nicely! Thank you!