Bollinger Bands MTF

The Bollinger Bands MTF indicator provides a multi-timeframe approach to volatility analysis by plotting Bollinger Bands from both the current and a user-defined higher timeframe simultaneously on a single chart. This allows traders to identify confluence between local price action and broader market trends within a unified visual framework.

Usage

The tool displays two sets of Bollinger Bands: the standard bands for the current chart timeframe and a second set representing a higher timeframe (HTF). This configuration is particularly useful for identifying key support and resistance zones that may not be visible on a single timeframe.

Traders can use this script to:

• Identify Confluence: Look for instances where price interacts with both the current and higher timeframe bands simultaneously.
• Trend Filtering: Use the HTF basis line (middle band) to determine the primary trend direction while using current timeframe bands for entries.
• Smoothing Transitions: The indicator includes an optional smoothing feature to reduce the "stair-step" effect common in MTF data, providing a more fluid visual representation of higher-period volatility.

Details

Bollinger Bands consist of an N-period moving average (basis), an upper band (basis + standard deviation), and a lower band (basis - standard deviation). This script utilizes the request.security function to fetch these calculations from a higher timeframe. To prevent repainting and ensure data integrity, it references historical data from the higher timeframe. The smoothing option applies a simple moving average (SMA) to the fetched HTF values, which can help in visualizing the trend more clearly on lower timeframe charts.

Settings

• Higher time frame: Determines the timeframe from which the secondary Bollinger Bands are calculated (e.g., 60 minutes, Daily, Weekly).
• Smoothing: A toggle to enable or disable an 8-period SMA smoothing on the HTF bands to create cleaner lines.
• Length: Sets the lookback period for the Bollinger Bands calculation (default is 20).
• Mult: Sets the standard deviation multiplier for the width of the bands (default is 2.0).

FAQ

How do I change the higher timeframe?

You can adjust the "Higher time frame" setting in the indicator inputs. While the script often defaults to common logical steps (like 1h for a 15m chart), you can manually select any timeframe supported by your platform.

Why do the higher timeframe bands look different than the current ones?

The MTF bands represent data from a broader perspective. Because they cover more price action per bar than the current timeframe, they appear wider and move more slowly, acting as a "macro" filter for the "micro" movements of the current chart.

How can I get access to this tool?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.