Close Bollinger Bands Crossover - VertexFX

Didi Index Clean & Reversed



Didi index clean and reversed is a client side VertexFX VTL indicator. It is adapted from the Didi index indicator. In this version the slow line is displayed. The Did index is based on moving averages and show the trend direction. Didi Index CR is used in different ways by traders. When the Index is above 1, the trend is up, when it is below 1, the trend is down. In the original version of Didi Index, Trend is up when the slow line is below 1. Hence the name reversed.
A simple method to trade is when the Didi index cross above the middle line, open a long trade, if it cross below the middle line, open a short position. The middle line is placed at 1. Use a fixed target and stoploss or base stoploss on support resistance levels. As the index shows the trend, one can open positions when pullback happens to a support/resistance level.
Parameters:
MA Method:     Moving average type,  1 SMA, 2 EMA, 3 WMA
Applied Price:    Price field for indicator calculation, 1 Close, 2 Open, 3 High, 4 Low, 5 Median, 6 Typical, 7 Weighted
Mean Period:   Mean MA Period
Slow Period:    Slow MA Period
Try different set of parameter values and back test the indicator before starting to trade with Didi Index. The indicator can be coupled with other indicators to generate reliable trading signals.

Close Bollinger bands crossover is a client-side VTL indicator. This indicator is based on Bollinger bands. The idea behind Bollinger bands is when the price is above the upper band, it is too high, and a mean reversion is expected. This indicator marks a red down arrow when the price closes above the upper Bollinger band. When the price close inside the Bollinger bands after closing above the upper band, it plots a green up arrow.
This indicator is useful in short-term mean reversion trading. When the red arrow appears, consider opening a short trade and then cover the short trade when the price closes inside the band. However, in strong trends, this may fail. It is better to use these signals in rangebound market conditions.
Parameters:
1.       Period – The Bollinger band period, default is 20
2.       Deviation – The standard deviations for bands, default is 2
3.       Shift – Bar shift, default is 0



The basic assumption of Bollinger bands is price will remain inside the band most of the time, when price moves beyond the band, it will immediately come back inside the band. However, in strong trends, prices remain outside the band for longer periods before reverting inside the band. Identifying the overall market conditions before using the signals to open trades is important. In rangebound market conditions, these signals work better.