[blackcat] L1 Pawel Kosinski BB with Candles

1 juin 2022

Level 1

Background

In Traders’ Tips of October 2019, the focus is Pawel Kosinski’s article : “Combining Bollinger Bands With Candlesticks”

Function
In “Combining Bollinger Bands With Candlesticks” in this issue, author Pawel Kosinski introduces us to a trading indicator that combines standard Bollinger Bands with the bullish engulfing candlestick pattern. Along the way we get a glimpse into the author’s process for trading strategy design and testing.

Remarks

Feedbacks are appreciated.

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Notes de version

OVERVIEW
The [blackcat] L1 Pawel Kosinski Bollinger Bands with Candles indicator combines Bollinger Bands with candlestick patterns to provide traders with enhanced visual cues for potential buy and sell opportunities. This script calculates Bollinger Bands using user-defined inputs and identifies specific candlestick patterns, such as bullish engulfing patterns and Bollinger Band triggers. It colors bars accordingly and plots labels on the chart for easy identification of these patterns 📈🕯️.

FEATURES

Customizable Bollinger Bands parameters:

Length
Number of Deviations
Price source
Detects key candlestick patterns:

Bullish Engulfing Pattern
Bollinger Band Triggers
Colors bars based on identified patterns for quick visualization 🎨

Plots Bollinger Bands (Upper, Middle, Lower) on the chart 📊

Adds labels to indicate buy ('B') and sell ('S') signals 🏷️

Generates alerts for detected patterns and RSI crossunders 🔔

HOW TO USE

Add the indicator to your TradingView chart by selecting it from the indicators list.
Adjust the input settings according to your preferences ⚙️.
Monitor the chart for colored bars indicating detected patterns.
Observe the plotted labels for buy and sell signals.
Set up alerts based on the generated signals to receive notifications when conditions are met 📲.
LIMITATIONS

The indicator relies heavily on candlestick patterns and Bollinger Bands, which may not be suitable for all market conditions.
False signals can occur in highly volatile or ranging markets 🌪️.
Users should always combine this indicator with other forms of analysis before making trading decisions.
NOTES

Ensure that you have sufficient historical data available for accurate calculations.
Test the indicator thoroughly on demo accounts before applying it to live trading 🔍.
Customize alert conditions as needed to fit your trading strategy.