Bollinger Bands arrow (BB arrow)

The Bollinger Bands arrow (BB arrow) indicator is a technical analysis tool that plots two sets of Bollinger Bands with different periodicities to identify potential price breakouts and trend reversals through visual arrow signals.

Usage

The tool is primarily used to identify instances where price interacts with the upper or lower volatility bands. When the price crosses above an upper band, a red arrow appears above the candle, signaling a potential overbought condition or bearish reversal. Conversely, when the price crosses below a lower band, a green arrow appears below the candle, signaling an oversold condition or bullish reversal.

By using two sets of bands (Short and Long), traders can identify confluence between different time horizons:

• Short-term signals: Smaller arrows triggered by the short-period bands, useful for scalping or quick entries.
• Long-term signals: Larger arrows triggered by the long-period bands, indicating significant volatility expansions or major price levels.

Details

The script calculates two independent Bollinger Band sets. Each set consists of a Simple Moving Average (basis) and two standard deviation bands (upper and lower).

• Short Band: Defaulted to a 20-period lookback, typically used for immediate price action monitoring.
• Long Band: Defaulted to a 40-period lookback, providing a broader view of market volatility.

The logic uses the ta.crossover and ta.crossunder functions to detect when the closing price penetrates these bands, triggering the respective arrow plots and alert conditions.

Settings

• BB length. short (red): Determines the lookback period for the short-term moving average and standard deviation.
• mult. short (red): Sets the standard deviation multiplier for the short-term bands.
• BB length. Long (blue): Determines the lookback period for the long-term moving average and standard deviation.
• mult Long (blue): Sets the standard deviation multiplier for the long-term bands.

FAQ

How do I interpret the different arrow sizes?

The indicator uses arrow height to distinguish between the two band sets. Smaller arrows represent signals from the short-period Bollinger Bands, while larger arrows represent signals from the long-period bands.

Can I set alerts for specific band touches?

Yes, the indicator includes specific alert conditions for both short and long band crosses, as well as grouped alerts for any buy or sell signal.

How do I access Bollinger Bands arrow (BB arrow)?

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