Bollinger Band and ADX Retrace Alert v0.1 by JustUncleL

This script is an implementation of a well known Bollinger band + ADX retracement strategy for 1min to 15min charts. This variation uses my own settings, a market direction filter and has an alert that can be added to your trading alarms.
Remove from Favorite Scripts Add to Favorite Scripts
// Title: "Bollinger Band and ADX Retrace Alert v0.1 by JustUncleL".
// Author: JustUncleL
// Date:   22-Jul-2016
// Version: 0.1
// * Description *
//   Brief: This strategy follows variation of a well known Bollinger band + ADX reversal 
//          strategy. Includes warning alert conditions. Can be used 1min to 15min charts.
//   Full:  Bollinger is standard calculated from SMA (20,2).
//          The strategy is we wait for a candle that breaks and closes outside
//          the Bollinger Bands and then filter on ADX and market direction: if
//          the ADX(6,20) is below level 25 and optional market direction filter applied.
//          Market direction (as indicated by 180/60 EMAs) needs to in the opposite
//          direction  to breaking candle. We place the binary trade on the 
//          following candle in opposite direction of breaking candle.
//          Martingale can be used, but only at most 2 levels, otherwise count trade as 
//          a loss, I use 10,25,60 or 10,30,90 Martingales.
//          Breakout identified by shapes:
//          The red or green hightlighted diamonds will normally pre-warn alert
//          for PUT/CALL to place trade on the NEXT candle after alert confirmed
//          on close of break candle.
//          If using 1min charts then place 60sec or 120sec binary trade.
//          Trade wisely, 1min candle trading can be fun, but also risky. Try
//          in Demo first. Only perform 5 trades a session. This strategy does not 
//          genrate many alerts, particularly with market direction filter, but they
//          are normally pretty good.
// * Version Changes *
//   0.1 : Original Version.
// * Reference *
//   This code use Bollinger calc by JayRogers in "[JR] Multi Bollinger Heat Bands - EMA/Break options"
//   Also uses ADX/DMI calc from "Directional Movement (DMI) by Greeny" (also found in other scripts)
//   http://www.binaryoptionstrategy.eu/36-binary-options-strategy-with-bollinger-bands-and-adx-indicator/
//   http://forums.binaryoptionsthatsuck.com/threads/12720-Bollinger-Bands-and-ADX-with-120-sec-expiry
//   http://forums.binaryoptionsthatsuck.com/threads/11973-The-Mysteries-of-the-Unnamed-Strategy
study("Bollinger Band and ADX Retrace Alert v0.1 by JustUncleL", shorttitle="BBADX v0.1 by JustUncleL", overlay=true, scale=scale.right)
// Collect all the settings, can be changed
adxlen = input(6, title="ADX Smoothing")
dilen = input(20, title="DI Length")
level1 = input(25,title="ADX Upper Level")
bb_length = input(20, minval=1, title="Bollinger Length")
bb_mult = input(2, title="Bollinger Multiplier", minval=0.5, maxval=10)
mFilter   = input(true,title="Use MA Direction Filter")
SlowMALen = input(180, minval=2, title="Slow Moving Average Length")
FastMALen = input(60, minval=1, title="Fast Moving Average Length")
dCandles  = input(3, minval=2, title="Candles to test Market Direction")
src = input(close, title="Source")

// Calculate moving averages
SlowEMA = ema(close, SlowMALen)
FastEMA = ema(close, FastMALen)
// Work out market direction from moving averages
direction = rising(SlowEMA,dCandles) and FastEMA>SlowEMA ? +1 : falling(SlowEMA,dCandles) and FastEMA<SlowEMA ? -1 : 0

// Draw the moving average lines
plot(SlowEMA, title="SlowEMA", style=line, linewidth=2, color=red)
plot(FastEMA, title="FastEMA", style=line, linewidth=2, color=olive)

// Calculate Bollinger Bands Deviation
bb_basis = sma(src, bb_length)
dev = stdev(src, bb_length)
bb_dev = bb_mult * dev
// Upper band
bb_high = bb_basis + bb_dev
// Lower Band
bb_low = bb_basis - bb_dev
// draw the Bollinger Bands
bb1=plot(bb_high, title="BB High", color=blue, transp=50, linewidth=2) 
bb2=plot(bb_low, title="BB Low", color=blue, transp=50, linewidth=2)
plot(bb_basis, title="BB Basis", color=teal, transp=50, linewidth=1)
fill(bb1,bb2, title="BB Fill", color=gray, transp=80)

// Calculate ADX
dirmov(len) =>
	up = change(high)
	down = -change(low)
	truerange = rma(tr, len)
	plus = fixnan(100 * rma(up > down and up > 0 ? up : 0, len) / truerange)
	minus = fixnan(100 * rma(down > up and down > 0 ? down : 0, len) / truerange)
	[plus, minus]

adx(dilen, adxlen) => 
	[plus, minus] = dirmov(dilen)
	sum = plus + minus
	adx = 100 * rma(abs(plus - minus) / (sum == 0 ? 1 : sum), adxlen)
	[adx, plus, minus]

[sig, up, down] = adx(dilen, adxlen)

// Check for break out alert
breakBBup  = na(breakBBup[1]) ? src>bb_high and close>open and sig<=level1 and (not mFilter or direction<0)
  : not breakBBup[1] and src>bb_high and close>open and sig<=level1 and (not mFilter or direction<0)
breakBBdn  = na(breakBBdn[1]) ? src<bb_low and close<open and sig<=level1 and (not mFilter or direction>0)
  : not breakBBdn[1] and src<bb_low and close<open and sig<=level1 and (not mFilter or direction>0)

// plot and highlight any breakouts
plotshape(breakBBup, title="BBADX down Arrow", style=shape.triangledown,location=location.abovebar, color=red, transp=0, size=size.tiny)
plotshape(breakBBdn,  title="BBADX up Arrow", style=shape.triangleup,location=location.belowbar, color=green, transp=0, size=size.tiny)
// draw background bar to highlight
breakColor = breakBBdn  ?  green : breakBBup ? red : na 
bgcolor(breakColor, transp=75)
// highlight the no-trade zones
adxbgColor = sig>level1 ? black : na

// Generate alert condition when approaching, so can be watch to make entry decision manually.
alertcondition( breakBBup or breakBBdn, title="BBADX Alert", message="BBADX Trade Alert")

// EOF
2 months ago
JustUncleL PRO UtterOnceOlufayo
2 months ago
@UtterOnceOlufayo, Yes, but you have to enable it when add the Alert to your alarms in "Manage Alerts" panel in Tradingview.
Ideas Scripts Chart
United States
United Kingdom
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out