Vervoort Smoothed %b [LazyBear] — Indicator by LazyBear

lazybear custom indicators vervoort b bollingerbands

As we know, %b is a measure of where prices are in relation to the outer Bollinger bands and therefore strongly related to volatility. This can get choppy, though.

Vervoort smoothed this using Zero lag TEMA of custom Heiken-ashi recalculated prices. According to Vervoort, "Smoothed Vervoort %b is often a leading indicator making smooth moves with clear turning points. Normal and hidden divergent moves make it an ideal tool to help find entry and exit points while watching price moving between the Bollinger bands."

More info:

List of my other indicators:
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- GDoc:

List of my free indicators: bit.ly/1LQaPK8
List of my indicators at Appstore: blog.tradingview.com/?p=970

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?

//
// @author LazyBear 
// List of all my indicators: 
// https://docs.google.com/document/d/15AGCufJZ8CIUvwFJ9W-IKns88gkWOKBCvByMEvm5MLo/edit?usp=sharing
//
study("Vervoort Modified BB%b [LazyBear]", shorttitle="VMBB%b_LB")
calc_tema(s, length) =>
    ema1 = ema(s, length)
    ema2 = ema(ema1, length)
    ema3 = ema(ema2, length)
    3 * (ema1 - ema2) + ema3

length=input(18, minval=2, maxval=100, title="%B Length")
temaLength=input(8, title="TEMA Length")
stdevHigh=input(1.6, title="Stdev High")
stdevLow=input(1.6, title="Stdev Low")
stdevLength=input(200, title="Stdev Length")
haOpen=(ohlc4[1]+nz(haOpen[1]))/2
haC=(ohlc4+haOpen+max(high, haOpen)+min(low, haOpen))/4

tma1 = calc_tema(haC,temaLength)
tma2 = calc_tema(tma1, temaLength)
diff = tma1-tma2
zlha = tma1+diff
percb = (calc_tema(zlha,temaLength)+2*stdev(calc_tema(zlha,temaLength),length) - wma(calc_tema(zlha,temaLength),length))/(4*stdev(calc_tema(zlha,temaLength),length))*100

ub=50+stdevHigh*stdev(percb,stdevLength)
lb=50-stdevLow*stdev(percb,stdevLength)
ul=plot(ub, color=red, title="Stdev+")
ll=plot(lb, color=green, title="Stdev-")
plot((ub+lb)/2, color=blue, style=3, title="Stdev Mid")
fill(ul, ll, red)
plot(percb, linewidth=2, color=maroon, title="SVE %b")