Hi All,

I know this sounds a bit boring but an one in this forum has an idea of these better bollinger bands from this bloke ( Dennis McNicholl)

a)

Better Bollinger Bands I

pds:=Input("Periods",2,200,20);
sd:=Input("Standard Deviations",.01,10,2);
alpha:=2/(pds+1);
mt:=alpha*C+(1-alpha)*(If(Cum(1)<pds,C,PREV));
ut:=alpha*mt+(1-alpha)*(If(Cum(1)<pds,C,PREV));
dt:=((2-alpha)*mt-ut)/(1-alpha);
mt2:=alpha*Abs(C-dt)+(1-alpha)*PREV;
ut2:=alpha*mt2+(1-alpha)*PREV;
dt2:=((2-alpha)*mt2-ut2)/(1-alpha);
but:=dt+sd*dt2;
blt:=dt-sd*dt2;
dt;
but;
blt

----------------------------------------------------------------------------------------------------

b

Better Bollinger Bands II

Lb:=Input("Look-Back Period ?",3,100,20);
De:=Input("Band Deviation ?",.5,3,2);
Alp:=2/(Lb+1);
Mt:=Alp*CLOSE+(1-Alp)*PREV;
Ut:=Alp*Mt+(1-Alp)*PREV;
Dt:=((2-Alp)*Mt-Ut)/(1-Alp);
mt2:=Alp*Abs(C-Dt)+(1-Alp)*PREV;
ut2:=Alp*mt2+(1-alp)*PREV;
dt2:=((2-Alp)*mt2-ut2)/(1-Alp);
But:=Dt+de*dt2;
Blt:=Dt-de*dt2;
But;
Dt;
Blt;

1. which one do you guys think is more sensitive toward the price movement?

2. in the indicator builder, I saw that we can modify something that is called Horizontal Shift? but how to code this horizontal shift in these formula?

I appreciate any supportive commets and thanks before hand

Regards

David

1. With the exception of the seeding for the exponential smoothing used for the "mt" and "ut" variables, both codes are the same. The further in time you get from the beginning of the chart, the less significance the seeding has; five times the period specified in the input argument is generally the significance threshold.


2. Ref()



Hope this helps.

wabbit [:D]

I don't know what part(s) you want shifted?

Have a look in the MS Users Manual for the description: Do the coding exercises in the free Equis Formula Primer (see the Files section of the forum), then you'll have all the knowledge needed to read and re-write these functions for yourself.


wabbit [:D]

Huh?

When the price starts to accelerate the standard deviation of data will also increase, so the bands will start to diverge from the center line.



wabbit [:D]

Bollinger uses standard deviations as his measure of volatility and he uses a period which is the same as the mean value used for the centre line or construction line. You can either use a shorter period than the centre line which will make the SD more "responsive." Or, you can use another measurement of "volatility"; Keltner used ATR, but there is nothing stopping you from experimenting with momentum or anything else which takes your fancy.

One problem you will encounter though: When you increase the "responsiveness" of the indicator, you will also increase the number of whipsaw trades.



Hope this helps.

wabbit [:D]