Progressive Trend Tracker

Feb 17

Progressive Trend Tracker (PTT) is a development combining Bollinger Bands with Highest Highs and Lowest Lows by K.Hasan Alpay & Anıl Özekşi.

Bollinger Bands have originally 3 lines: Simple Moving Average (Middle Line), Upper Band and Lower Band.

PTT concentrates on the upper and lower Bollinger band lines.
First, it calculates the bands using the Highest & Lowest prices in a period of time (Faster period and period) instead of closing prices.
Then, PTT takes the lowest values of the calculated upper band and, conversely, the highest values of the calculated lower band in a Slower period.

Default values:
Faster Period: 5
Period: 5
Bollinger Band Moving Average Period: 2
Slower Period: 10

These values are designed for daily time frame, so they have to be optimized in other timeframes by the user. (Ex: Higher values can be considered in lower time frames)

One more significant difference considering original Bollinger Bands is that PTT uses VIDYA (Variable Dynamic Moving Average = VAR) in the calculation instead of a Simple Moving Average.


Bollinger Bands cannot create significant BUY & SELL signals considering their original logic, but the primary purpose of PTT is to have substantial trading signals:

BUY when the price crosses above the PTT Lower line (cyan line)
STOP when the price crosses back below the PTT Lower line (cyan line)

SELL when the price crosses below the PTT Upper line (cyan line)
STOP when the price crosses back above the PTT Upper line (cyan line)

Developer Anıl Özekşi advises that traders may have more accurate signals when using a short-period moving average instead of closing prices, so I added the VIDYA moving average with the same default length ( 2 ), which is used in Bollinger Bands calculation. You can check the "SHOW MOVING AVERAGE?" box on the settings tab of the indicator.