LazyBear

DEnvelope [Better Bollinger Bands]

*** [Updated July 11, 2014: See below for DEnvelope %B and Bandwidth scripts to go along with this DEnvelope] ***

Bollinger Bands (BB) usually expand quickly after a volatility increase but contract more slowly as volatility declines. This extended time it takes for BB to contract after a volatility drop can make trading some instruments using BB alone difficult or less profitable.

In the October 1998 issue of "Futures" there is an article written by Dennis McNicholl called "Better Bollinger Bands", in which the author recommends improving BB by modifying:
- the center line formula &
- different equations for calculating the bands.

These bands, called "DEnvelope", follow price more closely and respond faster to changes in volatility with these modifications.

Fore more indicators, check out my "Master Index of indicators" (Also check my published charts page for new ones I haven't added to that list):
Master Index: List of all my indicators


More scripts related to DEnvelope:
------------------------------------------------
- DEnvelope Bandwidth: http://pastebin.com/jz6QL45G
- DEnvelope %B : http://pastebin.com/r4XfrDvd

Sample chart with above indicators: https://www.tradingview.com/v/dK1uhbN8/#c85798
Remove from Favorite Scripts Add to Favorite Scripts
//
// @author LazyBear 
// List of all my indicators: https://www.tradingview.com/v/4IneGo8h/
//
study("DEnvelope [LazyBear]", shorttitle="DENV_LB", overlay=true)
lb=input(20, title="DEnvelope lookback length")
de=input(2, title="DEnvelope band deviation")
alp=2/(lb+1)
src=hlc3
mt=alp*src+(1-alp)*nz(mt[1])
ut=alp*mt+(1-alp)*nz(ut[1])
dt=((2-alp)*mt-ut)/(1-alp)
mt2=alp*abs(src-dt)+(1-alp)*nz(mt2[1])
ut2=alp*mt2+(1-alp)*nz(ut2[1])
dt2=((2-alp)*mt2-ut2)/(1-alp)
but=dt+de*dt2
blt=dt-de*dt2
plot(but, color=red, linewidth=2)
plot(dt, color=gray)
plot(blt, color=green, linewidth=2)
List of my free indicators: http://bit.ly/1LQaPK8
List of my indicators at Appstore: http://blog.tradingview.com/?p=970

grahvity
2 years ago
Fantastic, LB. Here's a comparison for the benefit of people visiting this post.
snapshot
+3 Reply
AlexandreFF
2 years ago
Great job LB, it might also be interesting to do a Bandwidth with those bands too
Reply
LazyBear PRO AlexandreFF
2 years ago
Here you go...DEnvelope Bandwidth and %B. I will update the desc with the pastebin links.

snapshot
+1 Reply
AlexandreFF LazyBear
2 years ago
You're Amazing ! Thank you
Reply
MONEYMENOW PRO AlexandreFF
6 months ago
new to indicators .. does first inidcator mean volatility and the second %b indicates momentum
Reply
LazyBear PRO MONEYMENOW
6 months ago
Denv is similar to Bollinger Bands...provides a framework for including volatility while charting. More info on the rest below:
- DenvWidth is similar to BB Width: https://www.tradingview.com/stock-charts-support/index.php/Bollinger_Bands_Width_(BBW)
- Denv%B is similar to BB %B: https://www.tradingview.com/stock-charts-support/index.php/Bollinger_Bands_%25B_(%25B)

Reply
MONEYMENOW PRO LazyBear
6 months ago
Good Day LB..Thanks for ur reply I went to the webpage as per ur advice but it says no text and is blank.. Could u suggest me any other spot or is it possible for u send me the notes to "MONEYMENOW@HOTMAIL.COM".. I would be highly obliged.. Regards.
Reply
LazyBear PRO MONEYMENOW
6 months ago
Looks like Tradingview is not including the closing bracket in the links when converted to URL. Try these:
- DenvWidth is similar to BB Width: https://www.tradingview.com/stock-charts-support/index.php/Bollinger_Bands_Width_%28BBW%29
- Denv%B is similar to BB %B: https://www.tradingview.com/stock-charts-support/index.php/Bollinger_Bands_%25B_%28%25B%29
Reply
ChartArt
2 years ago
I'm going to test this against the classic Bollinger Bands from now on. BTW: This BTC chart below is so amazingly undecided in no clear direction that I had to share it for the sake of history :)

snapshot
Reply
ChartArt
2 years ago
Interesting. Someone used your code and adapted it for ThinkOrSwim and added additional features:

"This is a TOS version of the LazyBear's DEnvelope (Better Bollinger Bands) for TradingView. My TOS version comes with additional features : 2 deviations, 3 clouds added, arrows on first or second deviation and alerts."

http://www.smart-trading.world-record.ch/en/index.php/tos-donational-studies/55-better-bb
Reply
LazyBear PRO ChartArt
6 months ago
Thanks for the link. I am amazed how many ppl have ported my stuff to ToS and MT4...I have also seen some port my Pinescript port of a MT4 indicator back to MT4 :)
Reply
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