study(title = "VDUB BB %B REVERSAL_v4", shorttitle = "vdub_BB_%B_rev_v4") length = input(21, minval=1) src = input(close, title="Source") mult = input(0.001, minval=0.001, maxval=50) basis = sma(src, length) dev = mult * stdev(src, length) upper = basis + dev lower = basis - dev bbr = (src - lower)/(upper - lower) plot(bbr, color=teal, style=histogram, linewidth=4) plot(bbr, color=black, style=line, linewidth=2) plot(bbr, color = change(bbr) <= 0 ? gray : teal, style=line) //---- barcolor( bbr > 0 ? green :red) //========================bgcolor================================= trade_session = input(title='Trade Session:', type=string, defval='0400-1500', confirm=false) istradingsession2 = not na(time('1', trade_session)) bgcolor(istradingsession2?black:na, transp=80, offset=100, title="Trading session") // tf = input('240' ) tf_bool = na(tf_bool) ? 0 : change(time(tf)) and tf_bool == 0 ? 1 : change(time(tf)) and tf_bool == 1 ? 0 : tf_bool bgcolor(tf_bool == 1 ? gray : silver, transp=70, offset=100, title="BO Expiry")
theory being, as price momo accelerates, bb width increases, as price momo slows, bb width decreases, indicating an upcoming potential reversal
stay long when bb width (bbr) is above centerline
stay short when bb width (bbr) is below centerline
i don't see the point of the bgcolor, is it to mark the begin and ending of trading sessions for binary options, and you adjust the time using the input box?
your example chart has a bar periodicity of 2 hours (240 minutes), so that is beyond my useful timeframe for binary options. i turned off background colors.
it looks interesting, but I cannot imagine this is any better than a divergence indicator to show reversal points. just my 2 cents
i don't know what you mean by drawing a trendline spanning multi time zones. do you mean the red trendlines you drew on your indicator span many days?
on your top chart, April 7, 14 UTC, we have divergence where price has same low, but your indicator is higher, so it signals a potential reversal. similar to how price is near lower bband. Apr 8 06:00 you show arrow go long as indicator crosses over midline. Apr 13 06:00 you exit the trade when we have divergence at the top, price same high, indicator lower level. yes that's cool that you captured that many pips. however I'm interested in your scripts to do binary trading on 1 to 2 hour time durations, so I usually use a 5 min chart to time my entries and using divergences. on one of your scripts binary pro 2 v3 you mentioned you prefer this script,s o i was trying to see how it was used on a short time duration.
are you saying you can predict distance and duration, or the move just resulted in capturing that many pips?
I still did not understand the background color bar purpose, but i wasn't saying it was dumb. that's all.
The background colour is more for Binary options in an attempt to set & estimate expiry times of which you set yourself.
The strategy is simple but I cant explain how or why it is the case. Yes as you stated, connect the highs from top to bottom ( That is your trend ) Then what appears to be divergence is in fact in relation to the Bollinger band is a Lower high or Low. ie. price spike outside then inside indicating a reversal. Only when price crosses the 'Trend' line will be your exact entry & brake out point.
approx Apr 12 you draw a downslopeing trend line on bb % indicator ending Apr 17
then you draw a upward sloping trendline on the price chart.
that is your divergence (Price lows are higher than previous - higher lows, but indicator is making highs that are lower - lower highs)
next you draw upslope trendline on indicator using the bottom edges of indicator
the point where they cross is your entry to go short.
now i just need to draw the lines and arrows using code :)
what kind of binary options are you playing that have such a long duration (more then 1 day)? i understnad you can change the time value of the vertical lines, i'm just wondering who the broker is? thanks
Almost got it. The trend lines don't have to cross. Your entry is when price crosses the directional trend line not the divergence trend line.
example: time frame is on a weekly chart so pressing play I doubt anything will show but if you check a live chart the move short has already happened