My plan with this indicator was when trading at short timeframes, to modify my expectations on the potential impact of short term volatility based on volatility in longer timeframes, and when trading on longer timeframes to attempt to find an optimal entry point based on shorter term volatility.
The BBWP is calculated for a short, medium and long timeframe, alerts are triggered at extremities with the ability to filter by moving averages and chart movement. The alerts also trigger a plot to the "Backtest Signal" which can be used to trigger trades in a backtester.
Please see the discussions of how I'm using this indicator in the comments below.
Thanks to The_Caretaker for "Bollinger Band Width Percentile" upon which this multi time frame version is based.
릴리즈 노트
⋅
1.01 • Added bar color options, thanks @Jittra • Cleaned up the inputs
릴리즈 노트
⋅
Got sick of changing settings when I changed chart timeframes, added 'Auto' timeframe setting for medium and long timeframes. Auto applies as follows:
Chart Timeframe Auto Medium Auto Long 1 5 15 3 10 30 5 15 45 10 30 120 15 60 240 30 120 480 45 120 720 60 240 D 120 480 2D 180 720 3D 240 D 5D 720 D 5D D 3D W 3D W 2W 5D 2W M W M 2M
can you break down on how to use this indicator. it will be big help
EltAlt
⋅
The main problem I found with having three plots (and three MA plots) on a single percentile scale was getting good information from the chart quickly. What I found best for short term trading was using the line and background colors to give information from the higher timeframes. For example if I was trading on the hourly timeframe I would set: Short Time Frame BBWP • Enable, Chart • Color From Medium Medium Time Frame BBWP • Enable, 240 • Plot Type Hidden Long Time Frame BBWP • Enable, D • Plot Type, Background
This gives a standard Hourly BBWP but the line color is populated from the 4H and the background color is populated from the daily (brighter above the long term MA). So looking at one simple indicator I get a good idea of the volatility in three different timeframes.
These short term trading settings are now the default settings, but all settings are available.
For longer term trading I open a chart with the shortest term timeframe I'm interested (say hourly), then set: Short Time Frame BBWP • Plot Type, Average S M L • Plot Color, Color from Long • Short TF Alerts, Enabled • MA Filter, Enabled • And Moving, 1% • Short Term Extreme High, 90 • Short Term Extreme Low, 10 Medium Time Frame BBWP • Enable, 240 • Plot Type Hidden • Medium TF Alerts, Disabled Long Time Frame BBWP • Enable, D • Plot Type, Hidden • Long TF Alerts, Disabled
Since the short term plot is actually a plot of the average of the short medium and long term fimeframes I find it best to give them a bit more room to move for the alerts, but then restrict it by only alerting above the MA when it is moving by at least 1%.
Anyway that is how I'm back testing these signals right now, if your back testing finds any settings that work better please tell me!
peacefulLizard50262
⋅
I feel like our coding styles are comparable. :) I like the work.
EltAlt
⋅
@peacefulLizard50262, I was thinking the same, really like your "Weighted Harrell-Davis Quantile Estimator with AD Oscillator"!
peacefulLizard50262
⋅
@EltAlt, Thank you! I cant take too much credit for that one however, I only turned it into an oscillator! :)
can you break down on how to use this indicator. it will be big help