Bollinger Bands - 22MA

The Bollinger Bands - 22MA indicator provides a highly versatile take on the classic volatility envelope by allowing users to select from 22 different moving average types for the center basis. It features integrated signal generation, trade filtering based on volume or volatility, and a real-time performance tracking dashboard.

Usage

The indicator can be used to identify trend direction and volatility expansions. Users can choose a specific moving average (MA) type that suits their trading style, ranging from standard SMA/EMA to more complex filters like JMA or Kalman.

• Signal Generation: Buy labels appear when the price closes above the lower band and fulfills filtering criteria. Sell labels appear when the price closes below the upper band under similar conditions.
• Trade Filtering: The "Filter Signals by" setting allows users to restrict signals based on whether a volatility break (Short ATR > Long ATR) or a volume break (based on a modified RSI of volume) has occurred.
• Performance Tracking: A dashboard on the right side of the chart tracks the cumulative return, win rate, and total trade count based on the selected "Holding Period" and "Lot Size".

Details

This tool replaces the standard Simple Moving Average basis of the Bollinger Bands with a dynamic selection of 22 filters. These filters include:

• Classic: SMA, WMA, EMA, RMA.
• Advanced: JMA (Jurik), ALMA, HMA, VWAP.
• Signal Processing Filters: LowPass, HighPass, SineMA, SuperSmoother, and Kalman.

The signal logic incorporates a "Holding Period" which forces an exit (marked by a cross) if the signal hasn't naturally reversed within a specific number of bars.

Settings

Inputs

• Dataset: Defines the source price for calculations (default is close).
• Moving Average Type: Selects one of the 22 available MA algorithms for the center basis.
• Center MA Lag: Determines the lookback period for the basis and standard deviation calculations.
• StdDev: Sets the multiplier for the Bollinger Band width.
• Holding Period: Sets the maximum number of bars a trade can be held before an exit signal is triggered.
• Filter Signals by: Options to filter signals by Volatility, Volume, Both, or None.
• Short/Long ATR Lag: Parameters for the volatility filter.
• Show Information: Toggles the performance dashboard display.
• Lot Size: Sets the hypothetical position size for performance calculations.

FAQ

How do I use the different moving average types?

You can switch the "Moving Average Type" in the settings to change how the center basis reacts to price. Faster MAs like HMA or JMA will react quickly to price changes, while filters like SMA or TMA provide more smoothing.

What do the cross icons on the chart mean?

The crosses represent an "End Trade" signal. This occurs either because a reversal signal was generated or because the "Holding Period" limit was reached.

How can I get access to Bollinger Bands - 22MA?

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