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Bermaui Bands

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:

  1. Calculate Standard Deviation as oscillator that move between 0 and 100. I will name it Bermaui Deviation percent (BD %).
  2. If "BD %" is near zero then volatility is at its extreme. In addition, if "BD %" is near 100 then volatility is very low.
  3. High volatility mean a great probability for a trending market, while low volatility mean side-way or ranging market.
  4. Middle Line is a Simple Moving Average (SMA), because Standard Deviation is calculated depending on SMA.
  5. Add "BD %" to a simple moving average with the same number of bars in calculation to get The Upper Bermaui Band.
  6. 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.


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

  • Candles - number of candles used in bands calculations (default is 50 candles).
  • Deviation_Multiplier - 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).
  • Band_Width - Choose the width of the bands (median line will always be a dotted line).
  • Band_Color - Color of the bands.
  • Show_Signal - Show or hide signal arrows (default is true).
  • Risk_percent - Deviation percent that separate Buy & Sell arrows from close price when a signal is true (default is 25 %). Where you can use signal arrows as a stop loss levels.
  • Up_Arrow_Color - Color for buy signal.
  • Down_Arrow_Color - Color for sell signal.
  • Alerts - Choose to use or stop alert sound and message (default is true).
  • Text_BUY - Buy Alert message.
  • Text_SELL - Sell Alert message.
  • eMail_Send - Option to send notification to the user (default is false).
  • Notification_Send - Option to send notification to the user (default is false).

I hope you find Bermaui Bands a good investment tool for you.

exeedorbit
140
exeedorbit 2018.10.12 14:37 
 

Meh.

It's okay at predicting breakouts. But too many false signals. No alert on buy/sell signal.

Not very useful without a scanner and alerts.

Clifford Mwenja
135
Clifford Mwenja 2018.07.06 10:25 
 

This is a good breakout indicator. I love the fact that it shows me when the volatility is adding up and helps me trade news faster! Much love from Kenya Muhammad Elbermaui! Am a fan of Mo Salah and Egypt by the way!

Version 2.1 2017.07.17
A division by zero error is corrected.
Label in Data Window is enhanced.
Version 2.0 2017.07.03
- New band calculation method.
- Signal & alert now appear for the first time only until reverse.
- change in style and colors.