The Bollinger Bands Crossover Indicator presents arrows to highlight potential price crossovers with Bollinger Bands. These arrows indicate when the price might be crossing either above or below the bands.
Users interested in observing both upward and downward signals on the chart can apply the indicator twice: once with the 'Crossing Type' set to 'Above' to visualize instances where the price may cross above the band (upward arrow), and once set to 'Below' to see potential instances where the price might cross below the band (downward arrow).
Up Signal: This arrow may appear on the chart when specific crossover conditions with the Bollinger Bands are met, indicating a potential for upward movement.
Down Signal: This arrow can be displayed when certain crossover conditions with the Bollinger Bands are observed, indicating a potential for downward movement.
Parameters:
Length: Initially configured with a setting of 20, this parameter determines the number of periods for the moving average calculation within the Bollinger Bands.
Number of Deviations: Defaulted to 2, this setting controls the width of the Bollinger Bands by specifying the number of standard deviations.
Band Type: The initial setting is generally 'Upper,' with options to select 'Middle' or 'Lower.' The selected setting may influence the type of crossover signals received.
Crossing Type: Initially set to 'Above,' this can be changed to 'Below,' affecting the direction of the crossover signals.
Average Type: The default is 'Simple,' but it can be adjusted to 'Exponential,' 'Hull,' 'Smoothed,' 'Weighted,' or 'Wilders' to change the type of moving average used in the Bollinger Bands calculation.
Bollinger Bands Crossover Indicator on chart
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.