OPEN-SOURCE SCRIPT
Trend Gaussian Channels [DeltaAlgo]
This Script Introduces The Use Of The Gaussian Channel Concepts[\b]
This indicator consists of three lines: a central line that represents the moving average, and an upper and lower band that represent the volatility of the price movements.
The Gaussian channels is a concept consists of an upper & lower bands along with the basis; the mid band. The use of the Gaussian bands are simple, as described below.👇
Use Case:
There are many ways the Gaussian channel indicator can be used!
1. Look for the price to touch or cross the upper/lower bands of the Gaussian Channel Indicator. This indicates that the price has reached an high level of volatility. a reversal or correction may be imminent.
2. Wait for confirmation of the potential reversal or correction. This can be in the form of a bearish or bullish candlestick pattern, or a signal from another technical indicator.
a. For this reason I have implemented some signals that indicate trend shifts & candle colors to clearly display the switching between a bullish sentiment or bearish.
3. Enter a trade in the direction of the reversal or correction. For example, if the price touches the upper band and a bearish candlestick pattern occurs or if you get a bearish signal, enter a short trade. If the price touches the lower band and indicates bullish candlestick pattern or bullish signal, enter a long trade.
Sometimes this band can act as a support & resistance, THIS is not always the case as it is not meant to be used as support & resistance.
This indicator consists of three lines: a central line that represents the moving average, and an upper and lower band that represent the volatility of the price movements.
The Gaussian channels is a concept consists of an upper & lower bands along with the basis; the mid band. The use of the Gaussian bands are simple, as described below.👇
Use Case:
There are many ways the Gaussian channel indicator can be used!
1. Look for the price to touch or cross the upper/lower bands of the Gaussian Channel Indicator. This indicates that the price has reached an high level of volatility. a reversal or correction may be imminent.
2. Wait for confirmation of the potential reversal or correction. This can be in the form of a bearish or bullish candlestick pattern, or a signal from another technical indicator.
a. For this reason I have implemented some signals that indicate trend shifts & candle colors to clearly display the switching between a bullish sentiment or bearish.
3. Enter a trade in the direction of the reversal or correction. For example, if the price touches the upper band and a bearish candlestick pattern occurs or if you get a bearish signal, enter a short trade. If the price touches the lower band and indicates bullish candlestick pattern or bullish signal, enter a long trade.
Sometimes this band can act as a support & resistance, THIS is not always the case as it is not meant to be used as support & resistance.
Script open-source
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