TradeChartist Range Bands

Aug 26, 2020

™TradeChartist Range Bands is an exceptionally well designed Entry/Exit indicator that plots fluid Range Bands and dynamic Support/Resistance levels on chart, along with trade entries by using both trend following and mean reversion principles.

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How does ™TradeChartist Range Bands work?

• The Indicator plots Range Bands with Upper, Lower and Mean, calculated using trading models that use both Trend Following and Mean Reversion principles . It is the Range Bands that decide the trade Entries as the breakouts above upper band generates long entries and the breakouts below the lower band generates the short entries.

• The Range Bands Type (Automatic, Aggressive or Normal) can be chosen from the settings. Default is Automatic and it uses Aggressive for non 24 hr markets and Normal for 24 hr markets like Cryptocurrencies.

• The width of the Range Bands can be changed using the Range Multiplier from the settings. Default is 1.618 , minimum value is 0.618 and maximum value is 2.0.

• The frequency of the Trade Signals depends on both Range Bands type and Range Multiplier. So it is worth spending some time to test the indicator based on these 2 factors on the asset traded, to maximise the profit potential by optimising the type and multiplier value.

• In addition to the Range Bands, the indicator also plots Dynamic Support and Resistance bands that are more sensitive to price action and helps the user determine growing support/resistance which is indicated by coloured dots. These dots normally appear when the Support or Resistance stays at the same level for a few bars.

• The expansion and contraction of the Support and Resistance bands also help in visualising the price volatility, and an extremely narrow squeeze of these levels within the Range Bands normally signals a lucrative market move. This is usually followed by a breakout from the bands and will be signalled by the Trade Entry plots (BUY and SELL).

• The Dynamic Support and Resistance levels can be enabled or disabled from the settings. The fill between these dynamic levels helps the user to visualise the Bull and Bear strength/power. This fill can also be disabled from the settings if not required.

• The indicator has a nice Fibonacci levels generator companion that helps spot near support and resistance levels using Fibonacci Retracement tool.

• There are 3 types of Fib plots that can be chosen from the settings - Auto-Fibs, Fibs based on Lookback, Fibs based on Price Input.

• The Auto-Fibs feature is used as default and it automatically plots fib retracement based on nearby significant high/low (highest from previous up and down trends). This is normally based on nearby trade entries too. Occasionally, during choppy markets/sideways movement, the range of these levels can be quite small and if close price exceeds the 4.618 fib level, one of the other Fib plot options can be used. Alternatively, Plot fibs from current high/low can also be used.

• Fibs based on lookback can be used by choosing the number of candles or days lookback to help the indicator automatically find the high and low of the period to generate fib levels. Similarly, Fibs based on price input requires, user to manually enter the high and low price points for the indicator to generate fib levels based on user input.

• The indicator has two colour schemes for the Dynamic Support/Resistance fill and bar colours. The coloured bars and the fill will help visualise the price trend. This can be changed or disabled from the settings.

• The Fib levels can be disabled by unchecking lines and labels from the styles tab of indicator settings.

• Long and Short entry Alerts can be created by using Once Per Bar Close.

• The indicator does not repaint. Alerts may display potential repaint warning, but this is because the code uses bar index for fib labels. For confidence in the indicator, it can be tested using bar replay to make sure the real-time and bar replay trade entries and plots stay on the same bar/timestamp.
  
  
  The different elements of the indicator are shown below in the chart.
  
  
  
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  ™TradeChartist Range Bands can also be connected to ™TradeChartist Plug and Trade to generate Targets, Stop Loss Plot etc. and other alerts can also be created. Use Range Bands Trend Identifier to connect as an Oscillatory Signal to Plug and Trade. Example chart shown below.
  
  
  
  
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  Example charts:1. ADA-USDT 4hr chart using Aggressive type and 1.618 Range Multiplier2. ADA-USDT 4hr chart using Normal type and 1.618 Range Multiplier3. XAU-USD 15m chart using Normal type and 1.618 Range Multiplier - Fibs based on 3 days lookback4. DJI 4hr chart using Normal type and 2.0 Range Multiplier5. GBP-USD 15m chart using Normal type and 1.618 Range Multiplier6. LINK-USDT 1hr chart using Normal type and 1.236 Range Multiplier
  
  
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  Best Practice: Test with different settings first using Paper Trades before trading with real money
  
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  This is not a free to use indicator. Get in touch with me (PM me directly if you would like trial access to test the indicator)Premium Scripts - Trial access and Information
  
  Trial access offered on all Premium scripts.
  
  PM me directly to request trial access to the scripts or for more information.
  
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Sep 1, 2020

Release Notes

Code Updated

Oct 7, 2021

Release Notes

Code optimised