*** ***
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):
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
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):
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
//
// @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)
I am trying to save script in //@version=3, but it is not allowing me? Could you help.Thanks for all the Good work.
//@version=3
// @author LazyBear
// List of all my indicators:
//
study("DEnvelope ", 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),ut=alp*mt+(1-alp)*nz(ut)
dt=((2-alp)*mt-ut)/(1-alp)
mt2=alp*abs(src-dt)+(1-alp)*nz(mt2)
ut2=alp*mt2+(1-alp)*nz(ut2)
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)
"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
- 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)