Dragon Bands Z
- Indicators
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Andres Felipe Carvajal Rodriguez
I do not develop indicators to follow the market. I develop algorithms to understand it.
My goal is to transform price complexity into objective, robust, and efficient tools that help traders make decisions with greater precision, consistency, and risk control. - Version: 1.1
- Updated: 14 November 2026
- Activations: 12
DRAGON BANDS Z – Market Trend and Consensus Indicator
Identify Market Direction Through Multi-Indicator Consensus.
DRAGON BANDS Z is a technical analysis indicator designed to help traders identify market direction, assess trend strength, and detect periods of low directional momentum or conflicting market conditions.
It combines multiple technical indicators into a single visual channel, making market conditions easier to interpret without displaying the individual source indicators on the chart.
Main Features
Hybrid Channel
The indicator builds a three-line channel consisting of an upper band, a middle line, and a lower band.
Its calculation combines three technical tools:
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Bollinger Bands
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Keltner Channels
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Envelopes
Each component has an adjustable weight. Setting a weight to zero excludes that component from the calculation.
Four Market States
The channel changes color according to the market condition:
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Green – Bullish Consensus: The directional indicators agree on an upward bias, and momentum confirms the direction.
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Red – Bearish Consensus: The directional indicators agree on a downward bias, and momentum confirms the direction.
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Yellow – Low Directional Strength: The market shows reduced directional strength or compressed conditions.
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Gray – Conflicting Readings: The indicators do not provide sufficient agreement or momentum confirmation.
Direction Confirmation
The directional analysis combines three components:
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ADX and DI+/DI-
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MACD
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Stochastic
At least two directional votes must agree to establish a bullish or bearish bias. The Stochastic contribution also considers the relationship between %K and %D.
ADX helps identify periods of weak directional strength, which are displayed as yellow conditions.
Momentum Confirmation
The momentum filter uses:
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RSI
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Williams %R
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Laguerre RSI
These indicators validate the established direction rather than independently reversing it.
When at least two active momentum readings agree, the directional state can be confirmed. Neutral or conflicting readings may result in a gray state.
The momentum filter can also be disabled, allowing the indicator to display the directional consensus without this additional confirmation layer.
Multi-Timeframe Panel
The optional dashboard displays the market state across seven timeframes:
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M5
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M15
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M30
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H1
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H4
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H12
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D1
This provides a broader view of market conditions across different time horizons.
Customization and Alerts
DRAGON BANDS Z includes configurable parameters for channel calculations, indicator periods, thresholds, component weights, colors, and alert settings.
Traders can adapt the indicator to their preferred analytical approach.
Designed for Market Analysis
DRAGON BANDS Z brings channel analysis, directional consensus, and momentum confirmation together in one visual tool.
It is designed to support technical analysis and help traders evaluate market conditions. It does not execute trades or replace an independent trading strategy or risk management.
