It highlights breaks in the Bands, where the 0-line represents a price equal to the band.
These breaks can either be used as take-profit points or as entry points, depending on trend direction.
Entries can be at the beginning of a break (eg. for impulse or continuation moves)
or at the end (mostly for expected trend reversals)
To find the best setups, the BBC should be accompanied by other indicators (preferably ones that focus on different aspects)
The oscilating line in the middle indicates market cycles
PS. I build these scripts for my personal use but publish them open source, as I believe the best way to improve is to learn together.
If you find value in these indicators and use them regularly, feel free to leave a little something in the tip-jar for my next coffee break! ;-)
BTC . 36w3n9oSJHork1q4BKi4VHXph7LHTMZhhm
This line bounces between the upper and lower break-lines.
If the cycle line breaks above or below the zone, this usually indicates a strong reversal.
addidtions to the latest version:
- the fill color is determined on general market direction
- dots on the cycle line show probable turning or take-profit points
- up or down triangles show bounce points and thus higher probability turning points
In this example I've added the BBC indicator on the current TF,
and a second one on a 10x timeframe.