This indicator helps you to design GRIDS on price.
Creates the Grid bands, based on the standard deviation of the price according to the parameter "DesvBar".
The grid can create up to 6 bands based on the parameter "nBand"
The grid is created based on 3 different assumptions:
- Exceeding the price of the deviation bands (Bollinger Bands)
- Exceeding the trend of 5 bars above the moving average of “nBar”
- As long as the GRID is finished
GRiD is terminated based on the following assumptions:
- The price has exceeded the maximum limit of the Grid
- The full Bar has exceeded the maximum limit of the Grid
- The price has exceeded the maximum limit of the Grid in a range greater than the width of the band.
DevBar = Number of bars to calculate the standard deviation.
nBar = Number of bars to calculate the moving average of the price
Kconf = Confidence range to apply to the standard deviation.
Kmult = Multiplying constant to extend the maximum range of the GRID
nBand = Number of GRID bands
TipoSal = GRID destruction scenarios
TipoEnt = GRID creation assumptions