Bollinger Band Width Ratio

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Hi everyone,

For some reason, the BBandwidthratio indicator that I wrote won't plot. Can any of the experts take a look at it and see what is wrong?

Thanks for your help,

Maji

Files:
bbandwidthratio.mq4  3 kb
 
Maji:
Hi everyone,

For some reason, the BBandwidthratio indicator that I wrote won't plot. Can any of the experts take a look at it and see what is wrong?

Thanks for your help,

Maji

Hi!

I fixed it. It had some bugs.

Can U post here how U want to use it?

Regards

Kale

Files:
bbandwidthratio.mq4  3 kb
 

Thank you for your help. I am not sure what was messed up, but then you worked your magic.

I want to use the ratio to find out periods of low volatility. When the ratio falls below a certain level (that I want to optimize), then we place a straddle order. As we know there is usually a breakout following periods of low volatility, I am trying to catch that breakout.

I am still far from completing any EA based on this system, but that is my idea. Maybe you can whip up an EA based on this theory.

Thanks again,

Maji

 
Maji:
Thank you for your help. I am not sure what was messed up, but then you worked your magic.

I want to use the ratio to find out periods of low volatility. When the ratio falls below a certain level (that I want to optimize), then we place a straddle order. As we know there is usually a breakout following periods of low volatility, I am trying to catch that breakout.

I am still far from completing any EA based on this system, but that is my idea. Maybe you can whip up an EA based on this theory.

Thanks again,

Maji

Can U post some descriptions, or link where U found this idea?

(idea with is implemented in this indicator)

 

an EA based on this idea is a Great idea..

open two trades above and below consolidation area and when bollinger bands expand (squeeze indicator might help too) close trade opposite of direction OR

do it this way?

When bollinger band expand, open trade immediately in direction of price movement.

 

I got the basic idea from this link http://www.investopedia.com/articles/technical/04/030304.asp

However, for forex markets I think we don't need the MFI, and should just go with the straddle orders.

Maji

 

how to handle the 'head fake'?

 

Head fake is a fact of life that traders will have to leave with. There will be trades which will be losers because of the head fake. However, the other side should ride the trend and the profits should be greater than the losers in the long term.

Let me give an example. Say the two straddle orders are Long at 1.5500 and short at 1.5400. The stop loss will the opposite order. Now, if the long order is triggered but then that is a head fake, then the stop will be hit and we will be net short. We hope that the down trend starts with that short breakout and we can ride it for handsome profits.

Hope this helps.

Maji

 

Maji,

What's the difference between your "BBbandWithRatio" indic and the common "Standard Deviation" ?

Thanks

 

BBandWidth Ratio = (Difference between top band and lower band)/middle band

=> BBWR = 2*Standard Dev/MA

Hope this helps.

Maji

 

squeeze detector

Hi all,

I have been trying to code the following but I am really to bad at that:

n=50;//lookback period as extern int

Period=21;//default BB setting

BandWidth=Upper-Lower (more exactly= pips between high and low)

AvgBandwidth=Average bandwidth over the last n period

SqueezeRatio=BandWidth/AvgBandwidth

That is: if the squeeze ratio gets very low you'll have a breakout.

Can somebody help?

Thanks

Nick

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