OPEN-SOURCE SCRIPT
Standard Deviation Channel by Bill Johns
Sets lines on chart for 1 standard deviation and 2 standard deviations above and below the Average over a set amount of time. The default is 180 intervals of the set interval. Example:
If chart is set to 1 day interval. There will be 5 lines drawn for the past 180 days for the average, 1 std deviation above the average, 2 std deviations above the average, 1 std deviation below the average and 2 std deviation below the average.
Any set alerts for crossing a line will have a default label. The default labels are: "Strong Sell" for alert on 2 std deviations above the average. "Evaluate for Sell" for 1 std deviation above the average. "Evaluate for Buy" for 1 std deviation below the average. "Strong Buy" for 2 std deviations below the average.
If chart is set to 1 day interval. There will be 5 lines drawn for the past 180 days for the average, 1 std deviation above the average, 2 std deviations above the average, 1 std deviation below the average and 2 std deviation below the average.
Any set alerts for crossing a line will have a default label. The default labels are: "Strong Sell" for alert on 2 std deviations above the average. "Evaluate for Sell" for 1 std deviation above the average. "Evaluate for Buy" for 1 std deviation below the average. "Strong Buy" for 2 std deviations below the average.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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