Range bands works the same way as Bollinger bands except that they are self adapting, with range trading in mind.
Unless you are familiar with Bollinger bands, it is a standard deviation indicator that is based around the concept that when price deviates to quickly from the average, it's going to encounter resistance. This is true for all period settings, since standard deviation 2 or 3 is an extreme on any data. This indicator automatically chooses the period that is currently most suitable for range trading or scalping (on smaller time frames).
If you use "Bollinger Bands" for trend trading, this is not the indicator for you, then it is better to stick with 20, 36 or 50.
- The indicator comes with an alarm that sends a push notification on either close outside, close inside or both to the user.
In the notification comes information about what period is running and the slope of the mid band, so that the user can beforehand make a decision to open the trade or wait for the next signal.
- The indicator also comes with two different formulas for band optimization, both give very good calculations and most of the time they will agree, you can see which one you like best.
Remember that if you get an optimization that is higher than 100 periods on for example the 1 min time frame, it means that 1 min is not suitable for standard deviation range trading right now, but is in a trend, switch over to 5min. If you look on 100 periods on the 1min time frame it is the same as 20 periods on the 5 min time frame. It is therefore recommended to go over to the next time frame for better overview of what´s happening in the market.
Also remember that the band period is changing all the time, and therefore looking back on the history of the indicator will not give any information about it's performance. That can only be achieved by forward real or demo trading. And also performance will always be subject to traders decision.
- Chose an algorithm for period optimization - Choose what algorithm that adjusts the bands
- Bands Period(0 for auto) - Define your own period or let the indicator do it for you
- Bands Shift - Change the shift of the bands
- Bands standard deviation - Chose the standard deviation for the bands
- Bands maximum period - Put an upper limit to band period optimization
- Send a push notification on close outside - The first close outside after leaving inside will give a notification
- Send a push notification on close inside - The first close inside after have closed outside will give a notification