Bollinger Band Sideway & Expansion
- Thread starter vgswift
- Start date
Hello Vijay,
Sideways movement: Prices move in a narrow range, volatility is low.
Breakout (either side): Prices move up/down with heavy volume, volatility is high.
If you put (BollUpper - BollLower) / C * 100 in a UDI and then scan using formula for e.g. UDI7 >= 10, you can get a list of stocks whose bollinger band difference is more than 10%.
Regarding double top / bottom, I have no idea how to write a formula since the pattern may take weeks or even months to occur and a visual examination of price chart is necessary.
Trading a breakout could be tricky. Use Dow/Elliott Wave theories to ascertain wave formations, corrective patterns (like flat, zigzags, triangles or combinations of these) before you attempt to trade.
:thumb:
Sundy
Sideways movement: Prices move in a narrow range, volatility is low.
Breakout (either side): Prices move up/down with heavy volume, volatility is high.
If you put (BollUpper - BollLower) / C * 100 in a UDI and then scan using formula for e.g. UDI7 >= 10, you can get a list of stocks whose bollinger band difference is more than 10%.
Regarding double top / bottom, I have no idea how to write a formula since the pattern may take weeks or even months to occur and a visual examination of price chart is necessary.
Trading a breakout could be tricky. Use Dow/Elliott Wave theories to ascertain wave formations, corrective patterns (like flat, zigzags, triangles or combinations of these) before you attempt to trade.
:thumb:
Sundy
Thanks reply.
can u help how to get the Fibonacci lines drawn on the chart based on the either i choose monthly bais for daily/weekly chart.
this is what i got from the forum its for specific duration.
UDI44[RECORDCOUNT]
(HIGHEST_HIGH[60] - ((HIGHEST_HIGH[60] - LOWEST_LOW[60]) * 0.328))
UDI48[RECORDCOUNT]
(HIGHEST_HIGH[60] - ((HIGHEST_HIGH[60] - LOWEST_LOW[60]) * 0.628))
Vijay
can u help how to get the Fibonacci lines drawn on the chart based on the either i choose monthly bais for daily/weekly chart.
this is what i got from the forum its for specific duration.
UDI44[RECORDCOUNT]
(HIGHEST_HIGH[60] - ((HIGHEST_HIGH[60] - LOWEST_LOW[60]) * 0.328))
UDI48[RECORDCOUNT]
(HIGHEST_HIGH[60] - ((HIGHEST_HIGH[60] - LOWEST_LOW[60]) * 0.628))
Vijay
Hi
Fibonacci lines are usually drawn between highest and lowest points in a trend, i.e. wave. I am not sure about the formula you have mentioned. It is not possible to specify the trend's duration since each wave will have its own. Drawing Fibonacci lines is purely manual and subjective.
Irrespective of whether you draw them on daily, weekly or monthly charts, the trend has to be ascertained first. In other words, check for an impulse wave on the chart. Normally as price moves up, volume should also move up indicating strong demand (the reverse is true for a bear market too, indicating strong supply). There are no hard and fast rules for this but your experience in studying a chart will tell you whether the trend is impulse or pullback.
Once an impulse line is identified, you can connect the highest and lowest points to find out the Fibonacci ratios.
Fibonacci lines are usually drawn between highest and lowest points in a trend, i.e. wave. I am not sure about the formula you have mentioned. It is not possible to specify the trend's duration since each wave will have its own. Drawing Fibonacci lines is purely manual and subjective.
Irrespective of whether you draw them on daily, weekly or monthly charts, the trend has to be ascertained first. In other words, check for an impulse wave on the chart. Normally as price moves up, volume should also move up indicating strong demand (the reverse is true for a bear market too, indicating strong supply). There are no hard and fast rules for this but your experience in studying a chart will tell you whether the trend is impulse or pullback.
Once an impulse line is identified, you can connect the highest and lowest points to find out the Fibonacci ratios.
Attachments
thanks for detailed explaniation.
will be good for index.
But manual process of multiple stocks will be tedious work even for nifty stock keeping the volatile in move these days. any better way to achieve it for stocks also.
in Fcharts, is there any way show data of weekllow and weekhigh without the displaying the lines on the chart, if i put UDI i get lines drawns across all the price movement.
Vijay
will be good for index.
But manual process of multiple stocks will be tedious work even for nifty stock keeping the volatile in move these days. any better way to achieve it for stocks also.
in Fcharts, is there any way show data of weekllow and weekhigh without the displaying the lines on the chart, if i put UDI i get lines drawns across all the price movement.
Vijay
VSUNDY
this is code i found in this website to draw fib chart automatically, not sure how it can be done for f-charts.
code begins here
"http://www.traderji.com/day-trading/37079-linkons-db-bb-system.html"
SECTION_BEGIN("Fib_Levels");
/*---------------------------------------------------
Automatic Fib Levels
Aron Pipa, December, 11, 2005
--------------------------------------------------------*/
SetChartOptions(0,chartShowArrows|chartShowDates);
Plot(MA(Close,3),"",IIf(MA(C,3) > Ref(MA(C,3),-1),colorGreen,colorRed),styleThick);
Plot(C,"", IIf(PDI(7) > MDI(7),colorGreen,colorRed) , styleCandle);
//_SECTION_BEGIN("fib");
// Get values for fib levels
StartBar=SelectedValue(BarIndex());
FinishBar = EndValue( BarIndex() );
i = startbar;
period = FinishBar - StartBar;
Lo =LLV(L,period);
Hi = HHV(H,period);
Line0 = 0;
Line1 = 0;
Line2 = 0;
Line3 = 0;
Line4= 0;
Line5= 0;
Line6= 0;
Line100 = 0;
for( i = startbar; i < finishbar; i++ )
{
if(EndValue(C)<SelectedValue(C))
{
Line0 = EndValue(Lo);
Line100 = EndValue(Hi);
Line1 = Line0 + abs(Line100-Line0)*0.236;
Line2 = Line0 + abs(Line100-Line0)*0.382;
Line3 = Line0 + abs(Line100-Line0)*0.5;
Line4 = Line0 + abs(Line100-Line0)*0.618;
Line5 = Line0 - abs(Line100-Line0)*0.236;
Line6 = Line0 - abs(Line100-Line0)*0.382;
}
else
{
Line100 = EndValue(Lo);
Line0 = EndValue(Hi);
Line1 =Line0 - abs(Line100-Line0)*0.236;
Line2 = Line0 - abs(Line100-Line0)*0.382;
Line3 = Line0 - abs(Line100-Line0)*0.5;
Line4 = Line0 - abs(Line100-Line0)*0.618;
Line5 = Line0 + abs(Line100-Line0)*0.236;
Line6 = Line0 + abs(Line100-Line0)*0.382;
}
}
// external fib lines begining fom selecetdbarindex()
fib0= LineArray(startbar, Line0, finishbar, Line0, 0, 1);
fib100 = LineArray(startbar, Line100, finishbar, Line100, 0, 1);
// depth of middle lines
n= round((finishbar-startbar)/2);
// middle lines
fib1= LineArray((finishbar-n), Line1, finishbar, Line1, 0, 1);
fib2= LineArray((finishbar-n), Line2, finishbar, Line2, 0, 1);
fib3= LineArray((finishbar-n), Line3, finishbar, Line3, 0, 1);
fib4= LineArray((finishbar-n), Line4, finishbar, Line4, 0, 1);
fib5= LineArray((finishbar-n), Line5, finishbar, Line5, 0, 1);
fib6= LineArray((finishbar-n), Line6, finishbar, Line6, 0, 1);
Plot(fib0,"", colorGreen);
Plot(fib100,"", colorRed);
Plot(fib1,"", colorYellow,styleDashed);
Plot(fib2,"", colorPink);
Plot(fib3,"", colorWhite);
Plot(fib4,"", colorLightBlue);
//Plot(fib5,"", colorLightGrey);
//Plot(fib6,"", colorLightGrey);
_SECTION_END();
_SECTION_BEGIN("Fibo for all bars");
TimeFrameSet( inDaily );
DH=Ref(H,-1);
DL=Ref(L,-1);
DC=Ref(C,-1);
pd = (O+ DH+ DL + DC )/4;
sd1 = (2*pd)-DH;
sd2 = pd -(DH - DL);
sd3 = Sd1 - (DH-DL);
rd1 = (2*pd)-DL;
rd2 = pd +(DH -DL);
rd3 = rd1 +(DH-DL);
H4 = (dH - dL) * 1.1 / 2 + dC;
H3 = (dH - dL) * 1.1 / 4 + dC;
h2 = (dH - dL) * 1.1 / 6 + dC;
H1 = (dH - dL) * 1.1 / 12 + dC;
L1 = dC - (dH - dL) * 1.1 / 12;
L2 = dC - (dH - dL) * 1.1 / 6;
L3 = dC - (dH - dL) * 1.1 / 4;
L4 = dC - (dH - dL) * 1.1 / 2 ;
//Plot (pd,"Pivot",colorBlue,styleDots);
//Plot (rd1," R1 ",35,styleDots);
//Plot (rd2," R2 ",35,styleDots);
//Plot (rd3," R3 ",35,styleDots);
//Plot (sd1," S1 ",4,styleDots);
//Plot (Sd2," S2 ",4,styleDots);
//Plot (Sd3," S3 ",4,8+16);
/*
style = IIf(ParamList("Chart style", "styleCandle|styleBar")=="styleCandle",64,128+4);
Plot (C,Date ()+" close",1,style); //ENABLE THIS TO HAVE CANDLES AS WELL
*/
TimeFrameRestore();
tgt_up = H4*5/1000 + H4;
tgt_dn = L4-L4*5/1000;
Title = EncodeColor(colorWhite)+ "LINKON'S PIVOT TRADING SYSTEM" + " - " + Name() + " - " + EncodeColor(colorRed)+ Interval(2) + EncodeColor(colorWhite) +
" - " + Date() +" - "
//+ WriteIf(Col_action==colorGreen, EncodeColor(colorGreen)+"stay LONG","")+ WriteIf(Col_action==colorRed, EncodeColor(colorRed)+"stay SHORT","")+ WriteIf(Col_action==colorBlack, EncodeColor(colorYellow)+"No Trend","")+"\n"
+ "Vol= "+ WriteVal(V) +WriteIf ( V > MA(V,26) ,EncodeColor(colorGreen)+" UP "+ (V/MA(V,26))*100 + " %", EncodeColor(colorRed)+" DOWN "+ (V/MA(V,26))*100 + " %")
+ EncodeColor(colorGreen)+ "\n H4 : "+ EncodeColor(colorWhite)+H4+ EncodeColor(colorGreen)+ " tgt : "+ EncodeColor(colorWhite)+tgt_up
+ EncodeColor(colorGreen)+ "\n H3 : "+ EncodeColor(colorWhite)+H3
+ EncodeColor(colorGreen)+ "\n H2 : "+ EncodeColor(colorWhite)+H2
+ EncodeColor(colorGreen)+ "\n H1 : "+ EncodeColor(colorWhite)+H1+ EncodeColor(colorGreen)+ "` Hi: "+ EncodeColor(colorWhite)+H
+ EncodeColor(colorBlue)+ "\n Pivot : "+ EncodeColor(colorWhite)+pd + EncodeColor(colorYellow)+ "` Op: "+ EncodeColor(colorWhite)+O+ EncodeColor(colorAqua)+ "Cl: "+ EncodeColor(colorBrightGreen)+C
+ EncodeColor(colorRed)+ "\n L1 : "+ EncodeColor(colorWhite)+L1+ EncodeColor(colorRed)+ "` Lo: "+ EncodeColor(colorWhite)+L
+ EncodeColor(colorRed)+ "\n L2 : "+ EncodeColor(colorWhite)+L2
+ EncodeColor(colorRed)+ "\n L3 : "+ EncodeColor(colorWhite)+L3
+ EncodeColor(colorRed)+ "\n L4 : "+ EncodeColor(colorWhite)+L4+ EncodeColor(colorRed)+ " tgt : "+ EncodeColor(colorWhite)+tgt_dn
;
_SECTION_END();
Plot(6, "", IIf(PDI(7) > MDI(7) AND PDI(7) > 30,colorGreen,IIf (MDI(7) > PDI(7) AND MDI(7) > 30,colorRed,colorYellow)), styleOwnScale| styleArea|styleNoLabel,-0.5,100);
this is code i found in this website to draw fib chart automatically, not sure how it can be done for f-charts.
code begins here
"http://www.traderji.com/day-trading/37079-linkons-db-bb-system.html"
SECTION_BEGIN("Fib_Levels");
/*---------------------------------------------------
Automatic Fib Levels
Aron Pipa, December, 11, 2005
--------------------------------------------------------*/
SetChartOptions(0,chartShowArrows|chartShowDates);
Plot(MA(Close,3),"",IIf(MA(C,3) > Ref(MA(C,3),-1),colorGreen,colorRed),styleThick);
Plot(C,"", IIf(PDI(7) > MDI(7),colorGreen,colorRed) , styleCandle);
//_SECTION_BEGIN("fib");
// Get values for fib levels
StartBar=SelectedValue(BarIndex());
FinishBar = EndValue( BarIndex() );
i = startbar;
period = FinishBar - StartBar;
Lo =LLV(L,period);
Hi = HHV(H,period);
Line0 = 0;
Line1 = 0;
Line2 = 0;
Line3 = 0;
Line4= 0;
Line5= 0;
Line6= 0;
Line100 = 0;
for( i = startbar; i < finishbar; i++ )
{
if(EndValue(C)<SelectedValue(C))
{
Line0 = EndValue(Lo);
Line100 = EndValue(Hi);
Line1 = Line0 + abs(Line100-Line0)*0.236;
Line2 = Line0 + abs(Line100-Line0)*0.382;
Line3 = Line0 + abs(Line100-Line0)*0.5;
Line4 = Line0 + abs(Line100-Line0)*0.618;
Line5 = Line0 - abs(Line100-Line0)*0.236;
Line6 = Line0 - abs(Line100-Line0)*0.382;
}
else
{
Line100 = EndValue(Lo);
Line0 = EndValue(Hi);
Line1 =Line0 - abs(Line100-Line0)*0.236;
Line2 = Line0 - abs(Line100-Line0)*0.382;
Line3 = Line0 - abs(Line100-Line0)*0.5;
Line4 = Line0 - abs(Line100-Line0)*0.618;
Line5 = Line0 + abs(Line100-Line0)*0.236;
Line6 = Line0 + abs(Line100-Line0)*0.382;
}
}
// external fib lines begining fom selecetdbarindex()
fib0= LineArray(startbar, Line0, finishbar, Line0, 0, 1);
fib100 = LineArray(startbar, Line100, finishbar, Line100, 0, 1);
// depth of middle lines
n= round((finishbar-startbar)/2);
// middle lines
fib1= LineArray((finishbar-n), Line1, finishbar, Line1, 0, 1);
fib2= LineArray((finishbar-n), Line2, finishbar, Line2, 0, 1);
fib3= LineArray((finishbar-n), Line3, finishbar, Line3, 0, 1);
fib4= LineArray((finishbar-n), Line4, finishbar, Line4, 0, 1);
fib5= LineArray((finishbar-n), Line5, finishbar, Line5, 0, 1);
fib6= LineArray((finishbar-n), Line6, finishbar, Line6, 0, 1);
Plot(fib0,"", colorGreen);
Plot(fib100,"", colorRed);
Plot(fib1,"", colorYellow,styleDashed);
Plot(fib2,"", colorPink);
Plot(fib3,"", colorWhite);
Plot(fib4,"", colorLightBlue);
//Plot(fib5,"", colorLightGrey);
//Plot(fib6,"", colorLightGrey);
_SECTION_END();
_SECTION_BEGIN("Fibo for all bars");
TimeFrameSet( inDaily );
DH=Ref(H,-1);
DL=Ref(L,-1);
DC=Ref(C,-1);
pd = (O+ DH+ DL + DC )/4;
sd1 = (2*pd)-DH;
sd2 = pd -(DH - DL);
sd3 = Sd1 - (DH-DL);
rd1 = (2*pd)-DL;
rd2 = pd +(DH -DL);
rd3 = rd1 +(DH-DL);
H4 = (dH - dL) * 1.1 / 2 + dC;
H3 = (dH - dL) * 1.1 / 4 + dC;
h2 = (dH - dL) * 1.1 / 6 + dC;
H1 = (dH - dL) * 1.1 / 12 + dC;
L1 = dC - (dH - dL) * 1.1 / 12;
L2 = dC - (dH - dL) * 1.1 / 6;
L3 = dC - (dH - dL) * 1.1 / 4;
L4 = dC - (dH - dL) * 1.1 / 2 ;
//Plot (pd,"Pivot",colorBlue,styleDots);
//Plot (rd1," R1 ",35,styleDots);
//Plot (rd2," R2 ",35,styleDots);
//Plot (rd3," R3 ",35,styleDots);
//Plot (sd1," S1 ",4,styleDots);
//Plot (Sd2," S2 ",4,styleDots);
//Plot (Sd3," S3 ",4,8+16);
/*
style = IIf(ParamList("Chart style", "styleCandle|styleBar")=="styleCandle",64,128+4);
Plot (C,Date ()+" close",1,style); //ENABLE THIS TO HAVE CANDLES AS WELL
*/
TimeFrameRestore();
tgt_up = H4*5/1000 + H4;
tgt_dn = L4-L4*5/1000;
Title = EncodeColor(colorWhite)+ "LINKON'S PIVOT TRADING SYSTEM" + " - " + Name() + " - " + EncodeColor(colorRed)+ Interval(2) + EncodeColor(colorWhite) +
" - " + Date() +" - "
//+ WriteIf(Col_action==colorGreen, EncodeColor(colorGreen)+"stay LONG","")+ WriteIf(Col_action==colorRed, EncodeColor(colorRed)+"stay SHORT","")+ WriteIf(Col_action==colorBlack, EncodeColor(colorYellow)+"No Trend","")+"\n"
+ "Vol= "+ WriteVal(V) +WriteIf ( V > MA(V,26) ,EncodeColor(colorGreen)+" UP "+ (V/MA(V,26))*100 + " %", EncodeColor(colorRed)+" DOWN "+ (V/MA(V,26))*100 + " %")
+ EncodeColor(colorGreen)+ "\n H4 : "+ EncodeColor(colorWhite)+H4+ EncodeColor(colorGreen)+ " tgt : "+ EncodeColor(colorWhite)+tgt_up
+ EncodeColor(colorGreen)+ "\n H3 : "+ EncodeColor(colorWhite)+H3
+ EncodeColor(colorGreen)+ "\n H2 : "+ EncodeColor(colorWhite)+H2
+ EncodeColor(colorGreen)+ "\n H1 : "+ EncodeColor(colorWhite)+H1+ EncodeColor(colorGreen)+ "` Hi: "+ EncodeColor(colorWhite)+H
+ EncodeColor(colorBlue)+ "\n Pivot : "+ EncodeColor(colorWhite)+pd + EncodeColor(colorYellow)+ "` Op: "+ EncodeColor(colorWhite)+O+ EncodeColor(colorAqua)+ "Cl: "+ EncodeColor(colorBrightGreen)+C
+ EncodeColor(colorRed)+ "\n L1 : "+ EncodeColor(colorWhite)+L1+ EncodeColor(colorRed)+ "` Lo: "+ EncodeColor(colorWhite)+L
+ EncodeColor(colorRed)+ "\n L2 : "+ EncodeColor(colorWhite)+L2
+ EncodeColor(colorRed)+ "\n L3 : "+ EncodeColor(colorWhite)+L3
+ EncodeColor(colorRed)+ "\n L4 : "+ EncodeColor(colorWhite)+L4+ EncodeColor(colorRed)+ " tgt : "+ EncodeColor(colorWhite)+tgt_dn
;
_SECTION_END();
Plot(6, "", IIf(PDI(7) > MDI(7) AND PDI(7) > 30,colorGreen,IIf (MDI(7) > PDI(7) AND MDI(7) > 30,colorRed,colorYellow)), styleOwnScale| styleArea|styleNoLabel,-0.5,100);
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