Swing Bollinger Band

Bollinger Band Swing Detector

This indicator detects market swings based on the relative position of the price to the upper, lower, and middle bands of the Bollinger Bands indicator. It allows traders to visualize market structure based on volatility rather than fixed point distances.

The indicator includes a dashboard panel that displays multi-timeframe trend information and active support and resistance levels.

Swing Detection

Unlike standard ZigZag indicators that use fixed points or percentages, this tool uses the Bollinger Bands as a dynamic reference. The system utilizes a state machine logic. A Swing Low is identified when the price moves below a band and subsequently closes above it. Conversely, a Swing High is identified when the price moves above a band and subsequently closes below it. Once a trigger is detected, the algorithm scans backward to plot the vertex at the absolute high or low price.

Support and Resistance

The indicator plots horizontal lines derived from the identified swing points. These lines undergo a validation process to ensure relevance. A resistance line is plotted at a Swing High, but if a subsequent candle closes above this level, the line is considered invalid and is removed. Similarly, a support line at a Swing Low is removed if a future candle closes below it. This ensures that only unbroken levels are displayed on the chart.

Dashboard Functionality

The information panel provides real-time market analysis. The Trend Monitor shows the direction for M15, H1, and H4 timeframes, calculated by the slope of the Bollinger Band Middle Line over the last three candles. A Bullish signal indicates that the middle band is consistently rising, suggesting upward momentum. Conversely, a Bearish signal indicates a consistent downward slope, suggesting selling pressure. If the slope direction is inconsistent or lacks a clear trend, the system displays a Sideways signal, warning of potential consolidation or ranging market conditions. The Spread Monitor changes color if the spread exceeds 20 points. The Active Levels section lists the nearest valid Support and Resistance prices, sorted by distance from the current price.