Bollinger Divergence Oscillator
This oscillator is a derivative from Bollinger Bands. It is an attempt to find optimal zones for buying and selling. This indicator shows zones deserving attention, and it is up to trader whether to enter a trade or not.
Optimal zones are the zero values of the indicator. However, it doesn't mean that a deal should be performed right away. The best variant is analyzing the market state using a trade system together with this oscillator. If the oscillator recommends entering a deal in the given zone, the trading system confirms it, then you should perform a deal in the direction recommended by the trading system.
In addition, the indicator values can be used for opening additional position during a trend.
Indicator Input Parameters:
- BDO_Period - period of the indicator (corresponds to the period of Bollinger Bands).