Fancy Bollinger Bands

The Fancy Bollinger Bands indicator provides a highly customizable approach to volatility bands, offering a vast array of moving average types, forecasting capabilities, and alternative deviation methods.

Usage

The tool can be used to identify trend direction and volatility extremes using standard or alternative calculation methods. By default, it functions like traditional Bollinger Bands but allows users to swap the standard deviation for ATR to better account for recent market ranges.

Key features include:

• Highlight Inclusion: When enabled, the indicator only highlights the portion of the bands corresponding to the most recent period calculation, helping focus on current market dynamics.
• Ghost Trail: This feature displays a faded "shadow" of historical data when the inclusion highlight is active, providing context without cluttering the current view.
• Forecasting: The script can project the middle band forward based on a neutral, bullish, or bearish bias, allowing traders to visualize potential future trend levels.
• Gradient Fills: The background fill color between bands changes based on the %B value, where higher levels transition to green and lower levels to red.

Details

The indicator allows for significant flexibility by integrating multiple moving average types (SMA, EMA, WMA, HMA, etc.) for the middle band. It also supports multi-timeframe analysis and various candle types (Heikin Ashi, Renko, etc.) for calculation, independent of the chart's primary settings.

The forecasting logic calculates future potential values of the middle band by simulating subsequent price points based on the selected "Forecast Bias" and "Magnitude." This is particularly useful for anticipating where a moving average will sit if the price remains stagnant or moves in a specific direction.

Settings

Middle Band

• Middle Band Period: Sets the lookback period for the central moving average.
• Middle Band Type: Selects the smoothing algorithm (e.g., SMA, EMA, ALMA).
• Middle Band Resolution/Candle Type: Determines the timeframe and candle style used for the calculation.

Bands & Deviation

• Upper/Lower Band Multiplier: Adjusts the width of the bands relative to the volatility measure.
• Use ATR Deviation: Toggles between Standard Deviation and Average True Range for band width.
• Smoothing: Allows for independent smoothing of the upper and lower bands using separate MA types and periods.

Visuals & Forecast

• Highlight Inclusions/Ghost Trail: Controls how historical data is displayed on the chart.
• Forecast Bias/Magnitude: Configures the direction and strength of the projected moving average path.
• Show Details: Displays a label on the chart containing raw values for %B, Band Width, and levels.

FAQ

How do I access Fancy Bollinger Bands?

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

Can I use this for multi-timeframe analysis?

Yes, the indicator includes a resolution setting that allows you to calculate the bands based on a higher timeframe while viewing a lower timeframe chart.

What is the difference between Standard Deviation and ATR bands?

Standard deviation measures how much price deviates from the mean, while ATR measures the total range of price movement over a set period. Using ATR can often result in bands that are more responsive to gaps and high-volatility spikes.