indicator for envelope that encompasses X% of price action of last Y bars?

March 8th, 2022, 01:50 PM

Is there any base or custom indicator for NT8 that allows you to set an envelope (and ideally a midline) that will encompass X% (e.g., 80%) of price action that has occurred over the last Y (e.g., 20) bars?

March 11th, 2022, 02:08 AM

vickisb

Is there any base or custom indicator for NT8 that allows you to set an envelope (and ideally a midline) that will encompass X% (e.g., 80%) of price action that has occurred over the last Y (e.g., 20) bars?

Hi, would the Keltner channel with the standard deviation modified to a value between 1 and 2 work? (I don't know the exact number that would represent 80% of the sample size, but it would be somewhere between the 1st (68%) and 2nd (95%) standard deviations.)

If that isn't what you are looking for you, you might find something useful at lizardindicators.com. They have a relatively cheap ($150 one time payment) library of indicators with quite a few different moving averages and statistical analysis tools.

Hope this is somewhat useful.

March 11th, 2022, 06:46 AM

vickisb

Is there any base or custom indicator for NT8 that allows you to set an envelope (and ideally a midline) that will encompass X% (e.g., 80%) of price action that has occurred over the last Y (e.g., 20) bars?

mwf2220

Hi, would the Keltner channel with the standard deviation modified to a value between 1 and 2 work? (I don't know the exact number that would represent 80% of the sample size, but it would be somewhere between the 1st (68%) and 2nd (95%) standard deviations.)

@mwf2220, Keltner Channel doesn't use standard deviations, it uses ATR, but Bollinger Bands do -- that's probably what you meant.

@vickisb, Bollingers will give an out of the box solution that may be good enough, and you can try variations on the settings, as @mwf2220 says. Here's more on the percentages, as related to standard deviations: https://en.wikipedia.org/wiki/68%E2%80%9395%E2%80%9399.7_rule

You can vary the sd setting and see what works in terms of what you are looking for.

Bob.

indicator for envelope that encompasses X% of price action of last Y bars?

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indicator for envelope that encompasses X% of price action of last Y bars?