Bollinger - calculate volatility ?

[mcorgnet]

Hello everyone, 

I'd like some help, a formula to "calculate" volatility on bollinger. I assume there is something like "(TopBand - BottomBand) / MiddleBand * XXX" ?

Do someone has an answer ? The idea behind that would be to get an alert when volatility get higher than x% or xvalue (i don't know). 

Thanks a lot for your help :)

[Dominik Egert]

mcorgnet:

Hello everyone, 

I'd like some help, a formula to "calculate" volatility on bollinger. I assume there is something like "(TopBand - BottomBand) / MiddleBand * XXX" ?

Do someone has an answer ? The idea behind that would be to get an alert when volatility get higher than x% or xvalue (i don't know). 

Thanks a lot for your help :)

This is a simple approach, but since chart data is so called "non stationary data" you need some type of reference frame.

So, a value to compare to. You could use two BBs, one with large periods, and one with smaller periods. Then you can use the larger one as your reference frame.

There are multiple options available from statistical algebra, you could use to evaluate value series to each other. Standard deviation, variance, correlation. Each its own chapter, so you will need to do some research on this.

Here a link to what you could do to easily calculate the individual values:

https://www.mql5.com/en/docs/basis/types/matrix_vector

EDIT:

(TopBand - BottomBand) / MiddleBand

This doesn make any sense at all.

[Gerard Willia G J B M Dinh Sy]

Hello

To alert on something, you have to define that something

Standard deviation (bollinger bands) can be a good basis

So, measuring these values against the last X should not be difficult.

The association with the volumes would, in my opinion, be a good thing, because they are the basis of the dispersion which gives the standard deviation

[mcorgnet]

Thanks a lot for your answers, I think I'm going to try with the standard deviation. 

[Gerard Willia G J B M Dinh Sy]

If you go through the native ibands function of MQL5, pay attention to the small note on the order of the buffers.

"The buffer numbers are the following: 0 - BASE_LINE, 1 - UPPER_BAND, 2 - LOWER_BAND"

iBands - Technical Indicators - MQL5 Reference - Reference on algorithmic/automated trading language for MetaTrader 5

[mcorgnet]

I'm allready on this and everything works well thanks a lot ;)

My problem is : i'm having very good results, but i actually put manual values to compare to :  (TopBand - BottomBand) / MiddleBand * 100 - and I dont know if it's moving a after time to time ... 

[mcorgnet]

Hello Guys, 

After research, etc etc ... 

There is no evidence of having a automatic scripts that checks volatility and compares to something that is "standard" volatility. 

So this has to be compared to manual values, probably specific to the Asset you are trading. 

[Gerard Willia G J B M Dinh Sy]

Hello. What if you tried to compare volatility values according to the same principle of a small average and a large average