Bermaui Bands (BB) is a technical analysis tool that help filter between ranging and trending price movements. The idea behind this indicator can be explained in the next steps:
- Calculate Standard Deviation as oscillator that move between 0 and 100. I will name it Bermaui Deviation percent (BD %).
- If "BD %" is near zero then volatility is at its extreme. In addition, if "BD %" is near 100 then volatility is very low.
- High volatility mean a great probability for a trending market, while low volatility mean side-way or ranging market.
- Middle Line is a Simple Moving Average (SMA), because Standard Deviation is calculated depending on SMA.
- Add "BD %" to a simple moving average with the same number of bars in calculation to get The Upper Bermaui Band.
- Subtract "BD %" from a simple moving average with the same number of bars in calculation to get The Lower Bermaui Bands.
How to use it
- Use Bermaui Bands as a filter to help you identify trend direction.
- If BB lines separate from each other then there is a great probability that price candles will move in a side-way or a ranging movement.
- When BB lines separate from each other and price candles move in between them then trade with a ranging market strategy.
- If BB lines combine like a single line then there is a great probability that price will move in a trending movement.
- When BB lines combine like a single line and price candles move away from them then trade with a trending market strategy.
- Bermaui Bands User's Manual: https://www.mql5.com/en/blogs/post/718688
- Use Bermaui Deviation Percent as a supporting Oscillator: https://www.mql5.com/en/market/product/24174
- Test on demo to explore its features.
- Buy & Sell alert signals when price candles penetrate BB lines.
- Suggested Stop loss that depend on a percent from Standard Deviation.
- Well-designed style that user can control.
- Sound, email alerts depending on user choice.
Bermaui Bands most important inputs
1/ Bermaui Bands Settings
- Candles [Min =2]: number of candles used in bands calculations. If less than two Bermaui Bands will be terminated, alert message will pop up on the screen and this parameter will be reset to default (=50).
- Deviation Multiplier [>0]: this parameter will help you to control Bermaui Bands width or how much far the bands can be away from the center-line (default is 2.1). It should be bigger than zero or Bermaui Bands will be terminated, alert message will pop up on the screen and this parameter will be reset to default.
- Bands Width: Choose the width of the bands (median line will always be a dotted line).
- Bands Color: Color of the bands. Default is Gray.
2/ Arrow Settings
- Show Arrow Signals: Show or hide signal arrows (default is true).
- Buy Arrow Color: Default is Blue.
- Sell Arrow Color: Default is Red.
3/ Alert & eMail Settings
- Send Alert: Choose to use or stop alert sound and message Default is true.
- Send eMail: Option to send notification to the user by email. Default is false.
- Send Notification: Option to send mobile notification to the user. Default is false.
I hope Bermaui Bands to be a good trading tool for you. If you have any question send me a message and I will asnswer as soon as I am online.
Muhammad Al Bermaui, CMT
2. Organized Bermaui Bands parameters in a better style.
2. Improved code.
Label in Data Window is enhanced.
- Signal & alert now appear for the first time only until reverse.
- change in style and colors.