Bollinger Bands High Low - VertexFX Indicator

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Bollinger Bands High Low (BB HL) indicator is a finetuned version of the Standard Bollinger Bands indicator. Bollinger Bands defines and plots an upper band and lower band within which most of the price bars are confined. The calculation of Bollinger bands is based on a short term moving average that determines the trend. The upper and lower bands are two standard deviations away from the base moving average.  Standard Bollinger Bands uses the closing price of each candle in its calculation. In this refined Bollinger bands High Low indicator, the upper band is based on the standard deviation of candle high and lower band is based on the standard deviation of candle low, instead of the candle close used in standard Bollinger bands. This makes the indicator more responsive to price moves and extreme levels are more accurate.
Trading Strategies
1.       Bollinger Band squeeze. This might be the most common trading strategy with Bollinger bands. Bollinger band squeeze happens when the width of the band is the narrowest in recent times. This indicates a sideways trading or lack of volatility. Finally a volatility breakout will come and price will move in the breakout direction. This volatility breakout is identified by the expansion in band width.
2.       Reversals at Bollinger Bands. Look for candlestick reversal patterns like engulfing bars and pin bars formed at the upper or lower band. In the chart below, a bearish pin bar is formed at the upper band. Trade bearish signals forming at upper band and bullish signals forming at lower band.
The Bollinger Bands High Low indicator can be customized through the parameters.  You can change the Bollinger Band calculation period and Standard Deviation.  To edit parameter values, open the VTL script in VTL Editor by right clicking on the indicator name in Navigator and select Edit. Parameters are located at the top of the script file. Edit them save, compile and attach to chart again for the new parameter values to take effect

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