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Envelope (ENV)

Bands-Trailing Stop UtilityIntroduction Bands and trailing stops are important indicators in technical analysis, while we could think that both are different they can be in fact closely related, at least in the way they are made. Bands and trailing stops can be made from a simple central tendency estimator, like a moving average, and from a volatility estimator like standard deviation, atr...etc. This is why i propose this utility that allow you to make bands and trailing stops from any indicator in the price chart. How To Use All you have to do is select the indicator you want to make bands from in the settings, so just open the Bands-Trailing Stop Utility indicator settings and select your indicator in "Source". Make sure your source indicator is not in "hide" mode. For example here i'am using a moving average as source for the indicator. Mult control how spread the bands are from each others, by default mult = 1, if we use mult = 2 we get : Mult can be non-integer as well as lower than 1 (when lower than 1 the bands would be closer to each others) Error/Volatility Estimators You can choose from a wide variety of volatility estimators, select the estimator from the "Method" scrolling parameter in settings, by default the indicator will use the running mean absolute error (MAE) which don't use length. Other estimators use length, making length = to the period of the source indicator can help get better results. The root moving averaged squared error (RMASE) is just the square root of the simple moving average of the squared difference between the closing price and the source indicator. length control the period of the moving average of RMASE. You can also use the average true range with period length. It might work better with low lagging moving averages. The range is simply the difference between the highest and lowest over length periods of the source indicator. Stdev is simply the price running standard deviation. Trailing Stop When the trailing stop mode is checked the bands will be replaced by a trailing stop, the trailing stop will still depend on every settings of the indicator like mult/volatility estimator...etc. Conclusion You might find an use to this tool if you want to make bands/trailing stops from pretty much everything. The indicator used as source for the examples is a smooth exponential averager that i could share if i see interest from peoples. Thanks for reading !
Pine Script™ indicator
by alexgrover
10
Volume Adaptive BandsIntroduction I have been asked by @Coppermine and @Verbena to make bands that use volume to provide adaptive results. My first approach was to use exponential averaging, in order to do so i needed to quantify volume movement using rescaling with the objective to make the bands go away from each others when there is low volume, this approach is efficient and can work on any time frame, however i decided at the end to use another method which rely on recursive weighting, cleaner but more parametric. Those bands aim to highlight great breakouts point to go with the trend. The Indicator length control the period of the moving averages used in the script, however low length's don't necessarily provide indications for shorter terms breakouts as shown here : As i said the bands are close to each others when there is high volume and away when there is low volumes. Low volume period, bands will avoid to cross price High volume, bands will be close to generate signals. Correction Factor Higher time frames will lower the distance between each band, this is because volume is higher during higher time frames, remember that the indicator bands are close to each others when volume is high. 1h chart eurusd. This is why i added a correction factor, this factor can help you control the distance between each bands, when the correction factor is greater than 1 the bands will be closer to each others, this is useful for low time frames where the average volume is lower. When the time frame is high, use values between 0 and 1 to increase distance between each bands. Correction factor = 0.2 Conclusion I presented a new adaptive band indicator that adapt to trading volume by using recursive weighting, volume can be replaced by other indicators but you can have results going nuts, at the end its about experimentation. I hope you will find an use to it, thanks to @Coppermine and @Verbena for the request :) Thanks for reading !
Pine Script™ indicator
by alexgrover
18
DEnvelope [Better Bollinger Bands]*** *** Bollinger Bands (BB) usually expand quickly after a volatility increase but contract more slowly as volatility declines. This extended time it takes for BB to contract after a volatility drop can make trading some instruments using BB alone difficult or less profitable. In the October 1998 issue of "Futures" there is an article written by Dennis McNicholl called "Better Bollinger Bands", in which the author recommends improving BB by modifying: - the center line formula & - different equations for calculating the bands. These bands, called "DEnvelope", follow price more closely and respond faster to changes in volatility with these modifications. Fore more indicators, check out my "Master Index of indicators" (Also check my published charts page for new ones I haven't added to that list): More scripts related to DEnvelope: ------------------------------------------------ - DEnvelope Bandwidth: pastebin.com - DEnvelope %B : pastebin.com Sample chart with above indicators: www.tradingview.com
Pine Script™ indicator
by LazyBear
18