Daily Bollinger Bands + Stretch - Boring Money Concepts
Daily Bollinger Bands + Stretch (Z-Score & ATR)
OVERVIEW
This is for spotting high-probability reversals and capitulations from a ticker being stretched outside the Bollinger Bands on a Daily chart.
There are 2 statistical "stretch factors" that must be hit before the alert puts a signal on your chart. a Z-score based on standard deviation and a score based on ATR. This should filter out a lot of noise alerts. You can change the settings if you want more alerts and potentially more noise.
HOW THE STRETCH MEASURES WORK
The Z-score is the distance from the Daily BB Basis divided by the daily standard deviation used to build the bands. The standard 2.0 band edges correspond to Z values of +2 and -2. Because the ruler comes from the most recent 20 days (adjustable), the Z-score always measures stretch relative to recent behavior, not to a fixed historical level.
The ATR stretch is the same distance from the basis divided by the daily Average True Range. Where the Z-score reflects how widely daily closes have scattered, the ATR stretch reflects how far price actually travels in a typical day, including gaps. The two usually agree. When they disagree, most often after a quiet squeeze where closes cluster tightly, a high Z-score may overstate how extended price really is.
Each measure is calculated for the bar's close, high and low, so you can distinguish a bar that closed extended from one that only wicked there.
ALERTS
Two alert conditions are available: Daily Stretch Up and Daily Stretch Down. Alerts are designed for strength over frequency.
Trigger On: Close requires the bar to close beyond the threshold, filtering out wicks that snap back immediately.
Require Z AND ATR Agreement: when enabled, both measures must exceed their thresholds, which filters out weaker stretches.
For best results, set the alert frequency to "Once Per Bar Close" when creating the alert. Triangles on the chart mark each signal. I like Daily alerts for possible swing entries but timeframes above 60 minutes might work, also.
DEFAULT SETTINGS
Band Timeframe: D. BB Length: 20. Basis MA Type: SMA. StdDev: 2.0. ATR Length: 14. Z Alert Threshold: 2.5. ATR Stretch Alert Threshold: 2.0. Trigger On: Close. Require Z AND ATR Agreement: on.
OVERVIEW
This is for spotting high-probability reversals and capitulations from a ticker being stretched outside the Bollinger Bands on a Daily chart.
There are 2 statistical "stretch factors" that must be hit before the alert puts a signal on your chart. a Z-score based on standard deviation and a score based on ATR. This should filter out a lot of noise alerts. You can change the settings if you want more alerts and potentially more noise.
HOW THE STRETCH MEASURES WORK
The Z-score is the distance from the Daily BB Basis divided by the daily standard deviation used to build the bands. The standard 2.0 band edges correspond to Z values of +2 and -2. Because the ruler comes from the most recent 20 days (adjustable), the Z-score always measures stretch relative to recent behavior, not to a fixed historical level.
The ATR stretch is the same distance from the basis divided by the daily Average True Range. Where the Z-score reflects how widely daily closes have scattered, the ATR stretch reflects how far price actually travels in a typical day, including gaps. The two usually agree. When they disagree, most often after a quiet squeeze where closes cluster tightly, a high Z-score may overstate how extended price really is.
Each measure is calculated for the bar's close, high and low, so you can distinguish a bar that closed extended from one that only wicked there.
ALERTS
Two alert conditions are available: Daily Stretch Up and Daily Stretch Down. Alerts are designed for strength over frequency.
Trigger On: Close requires the bar to close beyond the threshold, filtering out wicks that snap back immediately.
Require Z AND ATR Agreement: when enabled, both measures must exceed their thresholds, which filters out weaker stretches.
For best results, set the alert frequency to "Once Per Bar Close" when creating the alert. Triangles on the chart mark each signal. I like Daily alerts for possible swing entries but timeframes above 60 minutes might work, also.
DEFAULT SETTINGS
Band Timeframe: D. BB Length: 20. Basis MA Type: SMA. StdDev: 2.0. ATR Length: 14. Z Alert Threshold: 2.5. ATR Stretch Alert Threshold: 2.0. Trigger On: Close. Require Z AND ATR Agreement: on.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.