You are always proud of your current work. The problem only occurs, if you review it a few days or months later and think "who is the stupid guy who had coded that piece of junk" - and then you discover it was yourself.
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@forrestang - tested and looking good - many thanks.
I use it to catch spiky turning points - usually set the period on the 4 way BB to the same number of bars as are on the chart - working well.
@Fat Tails - if you ever fancy doing a normalized ROC indicator i.e. vertically scaled in standard deviation units, if it's really easy, then that would be a really cool addition at some point. (I would use that one as an input to the market analyzer)
The neutral color just refers to the slope of the lines. I had been annoyed by all these false slope and angle indicators, which do not correctly show momentum relative to the chart scales. I have therefore coded an indicator which shows a neutral zone (slope close to zero) across all instruments and timeframes. The steepness measured by this indicator is normalized. You can apply it to a daily chart of YM or a 1-min chart of 6E and will always get a correct result for the relative slope of the lines. Try to do that with anyone of the many angle indicators and compare the results.
The Bollinger Universal has the option to measure a neutral zone for each of the three bands, or you can set it to midbandslope. In that case it will measure the slope of the moving average, which is used as a midband.
A yellow midband means that there is no strong trend but indecision. Now when there is a squeeze, that means that the directional movement has come to a halt, so you may expect a yellow area. This is like an unstable equilibrium. The color that follows indecision will then show the direction of the short term momentum, which would be the direction to enter your trade.
The chart attached gives an example, I have set the Bollinger Universal to MidBandSlope. The indicator below is the standard Bollinger Squeeze (Bollinger Bands inside the Keltner Channels).
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I have not updated to V.4 yet. Do you reccomend that I do that?
I understand what you have provided and I think that will be very useful.
How am I to interpret a numerical setting for "Neutral Threshold"? A larger number creates a larger neutral colored region. I see slope as a percentage of atr but I am not sure what that means. Could you describe that for me please?
out loud on this. A bollinger band that was color coded based on the relative width between or the convergence/divergence of the bands would be a measure of short term relative volatility. That could also be used like the squeeze is to refine out periods of non-entry?