Advanced versions of classic channel indicators.
Appearance of indicators.
Advanced versions of classic indicators of technical analysis. Now the user can choose between different types of base lines, price sources and volatility calculation models.
Bollinger band is a moving average around which a channel is built using standard deviations.
Bollinger bands.
RSI channel is a moving average around which a channel is built with standard deviations. The background color of the channel changes depending on the value of the relative strength index for the asset price: red if the index is less than 50, green if it is more than 50. If the price goes beyond the upper boundary of the channel, the background color is red, if the price goes beyond the lower boundary - green.
RSI channel.
Keltner channel is a moving average around which a channel is built using the average of the true range.
Keltner channel.
The idea of Bollinger bands is to combine a trend indicator, a volatility indicator and an oscillator. The bands indicate on the chart the direction and range of price fluctuations, taking into account the trend and volatility characteristic of the current market phase. Graphically, the indicator represents three lines: a simple moving average in the middle, characterizing the main direction of movement, and two lines, limiting the price chart from both sides, representing the positive and negative standard deviation from the average line and characterizing the volatility of the traded asset.
Basically, the indicator is used to determine the degree of volatility. When the bands expand, volatility increases, while when they contract, on the contrary, it falls.
It is believed that quotes should walk inside the range between the upper and lower Bollinger bands, only rarely leaving it. The middle line sets the direction, also, everything revolves around it and periodically returns to it. The upper and lower lines are a kind of price movement channel.
The most common patterns of using the indicator in trading: