The SVE Bollinger Band indicator is a trading algorithm whose calculations are used to trade with the trend. Thus, the calculations of the standard Bollinger Band using the additional SVE indicator are aimed at determining the strength and direction of the current trend and opening certain trades taking them into account. It is presented in the lower window of the price chart in the form of a Bollinger Band channel with lower and upper boundaries and a main line that moves in a certain direction relative to the channel boundaries and the signal level. The current values of the indicator are used to determine the current market movement and trade during this period.
The SVE Bollinger Band indicator is suitable for trading any currency pair on any timeframe.
The settings of the SVE Bollinger Band indicator have several sections, each of which is used for the general functioning of the indicator. The Input parameters section is used for its technical work, the Colors section is used to change the color scheme, while the Levels section is used to add signal levels to the indicator window.
-TEMAPeriod - value of the moving average period of the indicator. The default value is 8.
-SvePeriod - period of the SVE indicator. The default value is 18.
-DeviationsPeriod - the period of the current deviation of the indicator from the standard. The default value is 63.
-BBUpDeviations - deviation of the upper border of the channel. The default value is 1.6.
-BBDnDeviations - deviation value of the lower border of the indicator channel. The default value is 1.6.
The SVE Bollinger Band indicator is very easy to use. To open a certain trade, one should take into account the direction and strength of the current trend, which in turn are determined taking into account the current values of the indicator, namely the direction of its main line relative to the channel boundaries and signal level 0. If the indicator values characterize the presence of a strong uptrend, long positions are opened, if the trend is strong downward, short positions are opened. At the moment the current trend changes, in both cases, trades are closed.
Signal for Buy trades:
- The main line of the indicator is moving above level 0, crossing the upper border of the channel.
Upon receipt of such a condition, a buy trade can be opened on the signal candle, due to the presence of an uptrend in the current market. It should be closed at the moment the current trend changes, namely, when the opposite condition is received from the indicator. At this moment, one should consider opening new trades.
Signal for Sell trades:
- The indicator line goes down and crosses the lower border of the channel in the same direction.
A sell trade, due to the presence of a downtrend, can be opened immediately upon receipt of such conditions. At the moment of a change in the direction of the current trend, namely, when the direction of the indicator line changes, the current trade should be closed and a new one should be considered.
The SVE Bollinger Band indicator is a very effective trading algorithm, the calculations of which are based on the interaction of indicators, the effectiveness of which has been proven over time. To improve the accuracy of its signals and trading in general, it is recommended to use a demo account.