TradingView presents BBTrend, an indicator created by John Bollinger, the creator of Bollinger Bands.
In addition to introducing this new indicator, TradingView has also revised the existing Bollinger Bands indicators under the direct supervision of Mr. Bollinger. This process ensured that both new and updated tools conformed to his exacting standards. The partnership focused on seamlessly integrating these enhancements into TradingView, enriching the platform with John’s expert influence and maintaining the integrity of his analytical methods.
Bollinger Bands are key tools in technical analysis, primarily used to measure market volatility. These bands consist of a middle line, usually a simple moving average, flanked by two outer bands representing standard deviations from the mean. This formation helps traders identify potential price targets and identify overbought or oversold conditions.
BBTrend advances traditional Bollinger Bands by providing a clearer picture of market trends. It analyzes two separate sets of Bollinger bands — one short and one long — and displays the results in histogram format. Values above zero indicate an uptrend, while values below zero indicate bearish conditions. The distance from zero reflects the strength of the trend.
Integrating BBTrend into your trading strategy is simple.
- Adjust the settings: Adjust the Bollinger Band lengths in the BBTrend settings to match your trading preferences and the specific market dynamics you are analyzing.
- Read the histogram: Watch the histogram to determine the direction of the market trend. Positive values indicate an uptrend, while negative values indicate a downtrend.
- Assess the strength of the trend: Assess the strength of the trend by observing the distance of the histogram bars from the zero line. The further the bars extend from zero, the stronger the trend.
- Identify potential trend reversals: Pay close attention to the tops and bottoms of the histogram. Peaks can signal potential highs, while troughs can indicate potential lows.
- Notice the Color Intensity: Note changes in the color intensity of the histogram lines, as these may indicate shifts in momentum. Brighter colors indicate an increase in strength, while lighter colors indicate a weakening trend.
BBTrend is designed to provide traders with detailed information on market trends, reinforcing TradingView’s commitment to offering advanced analytical tools.