Volatility Support Resistance Indicator
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Hello everyone here Ivan Donatiello,
I am studying Kirk Northington’s book “Volatility-Based Technical Analysis: Strategies for Trading the Invisible” 2009 USA.
I am intrigued about an indicator called N Bande, but the code is the owner of MetaStock.
However I created a variant that gives me good triggers using the Bollinger Bands. The indicator I want to create must do the following.
1. Create a horizontal line when today’s Bollinger + is lower than yesterday’s bolligenger +.
2. Create 3 liene that have the value of the 10-period ATR, subtracting from the value of point 1.The exact opposite for Bollinger -.
Each time a new condition is created, as in point 1, the line must be updated, while keeping the old values on the graph history. It should appear a broken leena the most important values are the most recent.
Below is an image to start with.
Thank you all
Ok, so this is the indicator that plot the upper and lower bollinger bands as support/resistance lines when they quit the expansion phase (phase 2). Other lines are calculated with an ATR 10 periods. Sometimes lines are overlapping and it is a bit confusing IMO.
//https://www.prorealcode.com/topic/volatility-support-resistance-indicator/ //Nicolas @ prorealcode.com upper = BollingerUp[20](close) lower = BollingerDown[20](close) atr = averagetruerange[10] if upper<upper[1] and upper[1]>upper[2] then r1 = upper rr2 = upper - atr r3 = upper - 2*atr r4 = upper - 3*atr endif if lower>lower[1] and lower[1]<lower[2] then s1 = lower s2 = lower + atr s3 = lower + 2*atr s4 = lower + 3*atr endif return r1 coloured(200,200,0) style(line,2) as "r1", rr2 coloured(100,100,100) style(dottedline,1) as "r2", r3 coloured(100,100,100) style(dottedline,1) as "r3", r4 coloured(100,100,100) style(dottedline,1) as "r4", s1 coloured(200,200,0) style(line,2) as "s1", s2 coloured(100,100,100) style(dottedline,1) as "s2", s3 coloured(100,100,100) style(dottedline,1) as "s3", s4 coloured(100,100,100) style(dottedline,1) as "s4"Thanks Nicolas 🙂
Then the indicator worked well but it gave a delay period. In addition, the Bollinger caused the price to go out of the volatility bands too often, so I tried using bands built by linear regression. It seems that they work well. Below are the two codes and the screeshot.
Bands of volatility equal to the bollinger but with the measure of central tendency linear regression:
//https://www.prorealcode.com/topic/volatility-support-resistance-indicator/ //Ivan @ prorealcode.com period=10 x1=LinearRegression[period](close) x2=2.5*STD[20](close) h1=x1+x2 h2=x1-x2 return h1,h2, x1Indicator of Nicolas with the correction of the delay period:
//https://www.prorealcode.com/topic/volatility-support-resistance-indicator/ //Nicolas @ prorealcode.com upper = LinearRegression[10](close)+2.5*std[20](close) lower = LinearRegression[10](close)-2.5*std[20](close) atr = averagetruerange[40] if upper<upper[1] and upper[1]>upper[2] then r1 = upper[1] rr2 = upper[1] - atr r3 = upper[1] - 2*atr r4 = upper[1] - 3*atr endif if lower>lower[1] and lower[1]<lower[2] then s1 = lower[1] s2 = lower[1] + atr s3 = lower[1] + 2*atr s4 = lower[1] + 3*atr endif return r1 coloured(200,200,0) style(line,2) as "r1", rr2 coloured(100,100,100) style(dottedline,1) as "r2", r3 coloured(100,100,100) style(dottedline,1) as "r3", r4 coloured(100,100,100) style(dottedline,1) as "r4", s1 coloured(200,200,0) style(line,2) as "s1", s2 coloured(100,100,100) style(dottedline,1) as "s2", s3 coloured(100,100,100) style(dottedline,1) as "s3", s4 coloured(100,100,100) style(dottedline,1) as "s4"It would be nice to combine in a single indicator, but even so it’s more than good 🙂
Below is the screenshot. Note I put the invisible central blind.
Thanks Nicolas 🙂
This is my final version. I made some changes because I saw that volatility changes affect both the compressions and the expansions.
So the inidator treats supports and resistance on the expansion returns, in the same way supports and resistance on the beginning of volatility expansion.
It would be nice to be able to put the names to the supports and resistors, example above or to finaco to the line S1, S2, R1, R2 etc. but I do not know how to do it 🙂
//https://www.prorealcode.com/topic/volatility-support-resistance-indicator/ //Nicolas @ prorealcode.com upper = LinearRegression[10](close)+2.5*std[20](close) lower = LinearRegression[10](close)-2.5*std[20](close) atr = averagetruerange[40] if upper<upper[1] and upper[1]>upper[2] then r1 = upper[1] rr2 = upper[1] - atr endif if lower>lower[1] and lower[1]<lower[2] then s1 = lower[1] s2 = lower[1] + atr endif if upper>upper[1] and upper[1]<upper[2] then r3 = upper[1] r4 = upper[1] - atr endif if lower<lower[1] and lower[1]>lower[2] then s3 = lower[1] s4 = lower[1] + atr endif period=10 x1=LinearRegression[period](close) x2=2.5*STD[20](close) h1=x1+x2 h2=x1-x2 return r1 coloured(100,100,0) style(dottedline,1) as "r1", rr2 coloured(100,100,0) style(dottedline,1) as "r2", s1 coloured(100,100,0) style(dottedline,1) as "s1", s2 coloured(100,100,0) style(dottedline,1) as "s2", r3 coloured(100,100,100) style(dottedline,1) as "r3", r4 coloured(100,100,100) style(dottedline,1) as "r4", s3 coloured(100,100,100) style(dottedline,1) as "s3", s4 coloured(100,100,100) style(dottedline,1) as "s4", h1 coloured(255,140,0) style(line,2) as "h1", h2 coloured(255,140,0) style(line,2) as "h2", x1
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Topic Details
| Forum: | ProBuilder: Indicators & Custom Tools |
| Language: | English |
| Started: | 01/09/2018 |
| Status: | Active |
| Attachments: | 4 files |
