BB Trend Flat
The indicator determines trend/flat status of the market using Bollinger Bands.
Bollinger Bands diverge when the market moves sharply and converge when there is flat. The indicator uses this peculiarity. When the market is calm and distance between Bollinger Bands is less than some value, the indicator shows flat (gray histogram by default). When the market starts moving and divergence of Bollinger Bands exceeds this value, the indicator determines direction of the movement and shows an up trend (green histogram) or a down trend (red histogram).
To make the indicator independent from a timeframe, the indicator uses not an absolute distance between bands but the relative parameter "Flat factor".
- BB Period – period of Bollinger Bands.
- BB Deviation – Bollinger Bands deviation.
- Flat factor – parameter determining flat. The bigger the parameter, the bigger is the flat zone displayed by the indicator.