Inverse Bands

I'm very new to trading. I've been toying with moving averages to trigger swing trades and wanted an indicator that would swell when price moves sideways and squeeze when price is trending.

So this is the inverse of the popular Bollinger Bands indicator. It makes a very easy identifier for price breakout when paired with your favorite fast moving average. When MA falls outside the bands, it indicates an emerging trend. Still requires some curve fitting, but it is a work in progress.

I hope this isn't a direct copy of something I am not aware of.

Release Notes

Worked out a reliable way to invert Bol Bands across a wider price range. Still needs some curve fitting via "Length" and "X Offset" settings. In future revisions ill try to automate the fitting based on current price maybe. Until then we will have to manually fit the settings.

Release Notes

Squared the percentage, not totally sure it helped. Did some fine tuning with settings, and changed the label of X offset to width, because that is essentially what it does.

Open-source script

In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.

djsnowman06

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.

Open-source script

djsnowman06