Bollinger Bands with Squeeze and SMA

6월 20일

Indicator Description: BB+SMA
Overview:

Bollinger Bands (BB): Computes and plots three bands based on a selected moving average type (SMA, EMA, SMMA (RMA), WMA, VWMA) and standard deviation multiplier. The bands indicate potential support and resistance levels relative to price volatility.

Squeeze Condition: Detects periods of low volatility (squeeze) when the distance between the upper and lower Bollinger Bands narrows significantly. This condition can signal potential price breakouts.

Simple Moving Average (SMA): Calculates and plots a simple moving average based on user-defined length. It smooths price data to highlight trends and potential reversals.

Smoothing Line: Further enhances the SMA by applying different smoothing methods (SMA, EMA, SMMA (RMA), WMA, VWMA) over a specified smoothing length. It helps in identifying smoother trends and changes in direction.

Key Components:

Inputs: Users can adjust parameters such as Bollinger Bands length, type of moving average, standard deviation multiplier, squeeze condition length, squeeze threshold percentage, SMA length, smoothing method, and smoothing length.

Plotting: Displays the Bollinger Bands (basis, upper, lower), SMA, squeeze condition bands (basis, upper, lower), and a smoothing line on the chart.

Visualization: Utilizes different colors and line styles for clarity in visualizing each component's plot on the chart.

Purpose:

Helps traders identify potential price volatility, trend reversals, and breakout opportunities using Bollinger Bands, SMA, squeeze conditions, and smoothed moving averages.

Enhances technical analysis by providing clear visual cues for trend strength and potential entry/exit points based on the specified parameters.

Conclusion:

The "BB+SMA" indicator integrates multiple technical analysis tools into a single script, offering traders a comprehensive approach to analyzing price movements and making informed trading decisions directly on TradingView charts.