Bollinger Bands Trend Oscillator

Description:

BBTrend is a trend indicator derived from Bollinger Bands® observations. It exploits the convergence and divergence patterns of the upper and lower bands (specifically the 20-day and 50-day bands) to identify trends. In uptrends, upper bands converge while lower bands diverge, and vice versa in downtrends. It offers traders a practical tool for trend recognition.

Input Parameters:

  • Short: The 20-day moving average period.
  • Long: The 50-day moving average period.

Use Cases:

  • Trend Identification:  Mark the peaks and troughs in the BBTrend histogram as potential starting or ending points of trends. These are indicated by shifts from light to dark bars.
  • Confirmation Tool: Peaks or troughs in BBTrend gain additional significance when they coincide with a two-bar reversal pattern at either the upper or lower Bollinger Band.
  • Spotting Consolidations: During strong trends, the peaks and troughs in BBTrend often indicate consolidation periods, offering strategic insights for traders.

This feature can be used in:

  1. Market Scanner
  2. Strategy Tester
  3. Multi-Factor Alerts
  4. Smart Checklist

Do you want to learn more? Check out our blog post.

BBtrend oscillator

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