Bollinger Bands Performance - TradingED

This case study is based on a previous Bollinger Bands study, but with only one counts and a performance chart. The use of this indicator is restricted to private use and it can be used only by invitation. Different functionalities have been added to the original code, such as alerts and signals that seek to make trading much easier to interpret by any type of trading operator of any experience level, from beginner to intermediate and advanced .

Key components of the original indicator:
• The Bollinger Bands are a technical analysis tool developed by John Bollinger to generate signals of overbuying and overselling.
• There are three lines that compose Bollinger Bands: one Simple Moving Average (middle band) and an upper and lower band.
• The Upper and Lower Bands are typically used with 2 Standard Deviations +/- of a 20-day Simple Moving Average (or 20 candles) but can be modified.

The use of Bollinger Bands is based on the concept of mean price reversal, assuming that if the price deviates from the Moving Average it will eventually return to the mean price. As recognized by its creator: John Bollinger , "the touches of the bands are just that, touches, not signals".

So, a touch from the top is not in itself a sell signal and vice versa, a touch below should not be a buy signal either. A trader must look at the general direction of the price and then only take signals that align with the trend. For example, if the trend is down, you should only consider short positions when the lower band is indicated, and in case of an uptrend, take only long positions.

Another important point in the use of this indicator is that the bands will expand and contract as the Price Action becomes volatile (expansion) or is limited in its trading pattern (contraction). After a strong rise or fall in the trend, the market may consolidate, trading closely and crossing over and below the Moving Average until defining a new course, or continuing with the previous direction.

Main functions of this modified indicator:
1) You can select the type of MOVING AVERAGE, among many available options ( SMA , EMA , DEMA , HMA , etc.)
2) The SOURCE for the count can be determined by the trader (close, open, etc).
3) The MEASURE can be based on a CANDLES count if you are trading OHLC Charts from 1D onwards, or if your trading is intraday, you can also select counts by MINUTES, HOURS or DAYS, depending on your trading style.
4) LENGTH, by default it will be loaded as 20 but considering the previous point, you can modify it according to your convenience.
5) STANDARD DEVIATION, by default it will come loaded with 2 deviations, but you can modify it according to your convenience to operate.
6) You have the option to hide or show a LABEL at the top of the chart, with respect to the signals: bullish green, bearish red.
7) You have the option to hide or show SIGNALS based on the MOVING AVERAGE that you have previously chosen.
8) You have the option to hide or show SIGNALS based on the STANDARD DEVIATION that you have previously chosen.

Main functions to customize the style of this indicator:
a) You can select the colors for the UPPER BAND, MOVING AVERAGE and LOWER BAND depending on the trend, whether it is BEARISH or BULLISH , with the colors that best suit you. *
b) When you have a SHORT SIGNAL or a LONG SIGNAL, you can change the EMOTICON that comes by default. **
c) For any type of SIGNAL, it is painted as a VERTICAL LINE in the graph, you can change the color that comes by default. *
d) In the case of the LABELS that appear at the top, the text is not modifiable, but you can customize both the type of label and change the default color. *
e) You can select the colors for the BACKGROUND of the indicator according to the trend, whether it is BEARISH or BULLISH, with the colors that best suit you. *

* By default, they are marked as red for downtrends and green for uptrends.
** By default, they are marked with an emoticon indicating the possible direction of the price, down if it is bearish or up if it is bullish .
Release Notes: Bug fixed!
Release Notes: Bug fixed!
Release Notes: Bug Fixed
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Release Notes: Bug fixed!

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