Do you use dynamic ranges (such as Bollinger Bands or Envelopes) when trading? Usually such calculations use a fixed period, but does it reflect the nature of the market? In fact, the price chart consists of a series of successive processes: trends and flats. In this case, the internal logic of development usually can be traced only within the same process. Accordingly, the dynamic ranges built for the process occurring "here and now" suit the nature of the market better.
The Growing Bands indicator uses this approach. Instead of specifying the period, you should specify the beginning of process currently happening in the market. Since a trader can usually visually find this point on the chart, this approach is not only the most versatile, but also the most natural one.
The usage of Growing Bands in trading are the same as for other similar indicators: both the range boundaries and the mean line can be significant. The long absence of touches of the range borders may indicate that it is time to select a different starting point.
The calculation start time depends on the position of an object with a defined name on the chart. The default name is GB, but you can specify any other name using the appropriate indicator parameter. Using different names, you can run different instances of the indicator on one chart to simultaneously monitor different processes. For example, "higher" and "lower".
If the required object is not found on the chart during start, the indicator creates a vertical line with the required name near the right edge of the chart. To change the starting point of calculation, double-click on the line to select it and drag it to the desire location. In fact, this can be any object, only the name and location on the chart matter.
The indicator is calculated at the opening of new bars - it is obvious that for this indicator calculations on each tick are meaningless and only load the terminal. Therefore, for the immediate re-calculation of the indicator after changing the starting point, it must be restarted. Otherwise, the results of the new calculation will appear only after the opening of a new bar.
The indicator has four parameters:
- K - sets the band width;
- GBName - sets the name of the object that indicates the calculation start point;
- MidColor - sets the color of the midline of the range;
- BorderColor - sets the color of the range borders.
2. Parameter adjusting the width of lines
3. Use of the same color for an object and for the lines
4. Automatic recalculation after an object is moved