Indicators

Resetting Bollinger Band

Developer: MOOMOOFOREX

One of the biggest problems with the Bollinger Band indicator is that it is slow to respond to rapid changes in the market. Once there has been a spike in the market, the bands often severely widen too much to be useful to any trader, and take a long time to come back together to a meaningful level.

Now with the ResettingBB indicator, once the price reaches a particular standard deviation level, the indicator resets its calculation accordingly.

So now you can easily have a 2.0 standard deviation band that will reset whenever the price reaches something more extreme like 3.0 standard deviations.

PARAMETERS

The following are inputs available in the application:

  • Periods – The number of periods to calculate the standard deviation. Note the actual number of periods will be less than this if the last reset was within this range. Default is 20.
  • Deviations – The number of standard deviations to draw the bands at. Default is 2.0
  • Reset Threshold – The number of standard deviations, which if reached, causes the indicator to reset its standard deviation calculation. Default is 3.0
  • Threshold Calculation – If Fixed, the standard deviation calculation that is used to determine a reset uses a fixed number of periods. If Reset, this calculation resets with each reset. Default is Reset.
  • Min. Band Width – When the BB resets, the bands are together. If this is undesirable, a minimum width can be entered here. Default is 0.0
  • Hide Average – If yes, the moving average will be hidden. If no, the moving average will be displayed. Default is yes.
Risk Disclaimer

The application displayed on this page does not take in to consideration your individual personal circumstances and trading objectives. Therefore it should not be considered as a personal recommendation or investment advice. Past performance is not indicative of future results. There is no guarantee that the systems, trading techniques, trading methods, and/or indicators will result in profits or not result in losses.

Requirements

This indicator is only compatible with FXCM’s Trading Station Desktop. Additionally, an FXCM account is required (including free FXCM demo accounts).

Forex Capital Markets, LLC. (“FXCM LLC”) is an independent legal entity and is not affiliated with John Colonna or MooMooForex. MooMooForex is not owned, controlled, or operated by FXCM LLC and John Colonna is not an employee, agent or partner of FXCM LLC.

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