Bollinger squeeze and divergence

• 02/02/2018 at 2:03 PM #61276
  Petru

  Hi,

  Sometimes it’s possible to catch good runs and to make some profit when Bollinger bands start to diverge after a squeeze. But as Nicolas and some other members mentioned it is difficult to program this squeeze and divergence. I did some backtesting in excel and the results are kind of OK depends of individual’s expectations. I need your help to write a code to screen the market for opportunities based on my excel spreadsheet.

  The difference between upper and lower Bollinger bands must be smaller or equal to the minimum difference between Bollinerg bands over 100 periods multiplied with a constant (e.g. 1.1) (upper Bollinger – lower Bollinger) <= 1.1*min(upper Bollinger – lower Bollinger) over 100 periods . The signal that triggers a ‘buy’ will be given when the bands will start to diverge (current upper Bollinger > previous period upper Bollinger and current lower Bollinger > previous period lower Bollinger) with the price closing above upper Bollinger. To be on the conservative side 7 period moving average should be greater than 23 period moving average. I downloaded a spreadsheet and screenshot.

  It is for an uptrend market on a weekly timeframe.

  Thank you very much.

   

  Best Regards,

   

  Petru

  

  Petru

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  02/02/2018 at 9:45 PM #61307
  Nicolas

  Thanks. I will have a look at this next week. Remind me if I don’t

  

  Nicolas

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  02/03/2018 at 5:21 PM #61348
  Fr7

  Hi Petrus,
  I tried to make your system, but I can not get the signal of divergence ……. Let’s see if Nicolás can improve it. I leave the indicator so you can see it and tell me where the fault may be.

  Squeeze -Divergencia Bollinger

  BS=BollingerUp(close) BI=BollingerDown(close) BS100=BollingerUp[100](close) BI100=BollingerDown[100](close) DIF=(BI100-BS100) DIFF100= (1.1 *min (DIF,0)) MA7=AVERAGE[7](CLOSE) MA23=AVERAGE[23](CLOSE) MMup=MA7>MA23 MMdown=MA7<MA23 /////////////////////condiTIONS/////////// if ((BS-BI) <= DIFF100) AND BS>BS[1] AND BI>BI[1] AND CLOSE>BS AND MMup then direction = 1 elsif ((BS-BI) > DIFF100)AND CLOSE<BI and MMdown then direction = -1 endif if direction > 0 then backgroundcolor(10,255,10,100) else backgroundcolor(255,10,10,100) endif RETURN BS as "BS",BI AS "BI",BS[1] AS "BS-PAST",BI[1] AS "BI-PAST",MA7 AS "MA7",MA23 AS "MA23",close AS "CLOSE"

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  BS=BollingerUp(close) BI=BollingerDown(close) BS100=BollingerUp[100](close) BI100=BollingerDown[100](close) DIF=(BI100-BS100) DIFF100= (1.1 *min (DIF,0))   MA7=AVERAGE[7](CLOSE) MA23=AVERAGE[23](CLOSE) MMup=MA7>MA23 MMdown=MA7<MA23   /////////////////////condiTIONS/////////// if ((BS-BI) <= DIFF100) AND BS>BS[1] AND BI>BI[1] AND CLOSE>BS AND MMup then   direction = 1 elsif ((BS-BI) > DIFF100)AND CLOSE<BI and MMdown then   direction = -1   endif   if direction > 0 then backgroundcolor(10,255,10,100) else backgroundcolor(255,10,10,100) endif RETURN BS as "BS",BI AS "BI",BS[1] AS "BS-PAST",BI[1] AS "BI-PAST",MA7 AS "MA7",MA23 AS "MA23",close AS "CLOSE"

   

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  Nicolas

  

  Fr7

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  02/03/2018 at 5:36 PM #61351
  Fr7

  RETURN BS as "BS",BI AS "BI",BS[1] AS "BS-PAST",BI[1] AS "BI-PAST",MA7 AS "MA7",MA23 AS "MA23",close AS "CLOSE",bs100 as "BS100",bi100 as "BI100"

  1	RETURN BS as "BS",BI AS "BI",BS[1] AS "BS-PAST",BI[1] AS "BI-PAST",MA7 AS "MA7",MA23 AS "MA23",close AS "CLOSE",bs100 as "BS100",bi100 as "BI100"

   

  

  Fr7

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  02/03/2018 at 5:54 PM #61353
  Fr7

  Here the code without divergences

  BS=BollingerUp(close) BI=BollingerDown(close) BS100=BollingerUp[100](close) BI100=BollingerDown[100](close) DIF=BS-BI DIF100=(BI100-BS100) MA7=AVERAGE[7](CLOSE) MA23=AVERAGE[23](CLOSE) MMup=MA7>MA23 MMdown=MA7<MA23 /////////////////////condiTIONS/////////// if DIF>DIF100 AND CLOSE>BS AND MMup then direction = 1 elsif CLOSE<BI and MMdown then direction = -1 endif if direction > 0 then backgroundcolor(10,255,10,100) else backgroundcolor(255,10,10,100) endif RETURN BS as "BS",BI AS "BI",BS[1] AS "BS-PAST",BI[1] AS "BI-PAST",MA7 AS "MA7",MA23 AS "MA23",close AS "CLOSE",bs100 as "BS100",bi100 as "BI100"

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  BS=BollingerUp(close) BI=BollingerDown(close) BS100=BollingerUp[100](close) BI100=BollingerDown[100](close) DIF=BS-BI DIF100=(BI100-BS100)     MA7=AVERAGE[7](CLOSE) MA23=AVERAGE[23](CLOSE) MMup=MA7>MA23 MMdown=MA7<MA23   /////////////////////condiTIONS/////////// if  DIF>DIF100 AND CLOSE>BS AND MMup  then   direction = 1 elsif   CLOSE<BI and MMdown then   direction = -1   endif   if direction > 0 then backgroundcolor(10,255,10,100) else backgroundcolor(255,10,10,100) endif RETURN BS as "BS",BI AS "BI",BS[1] AS "BS-PAST",BI[1] AS "BI-PAST",MA7 AS "MA7",MA23 AS "MA23",close AS "CLOSE",bs100 as "BS100",bi100 as "BI100"

   

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  Petru

  

  Fr7

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  02/03/2018 at 9:54 PM #61374
  Petru

  Thank you and I appreciate very much your help. As I mentioned it is a great forum and people like Nicolas, you and others is keeping it alive. Unfortunately my programming skills are not great but gladly I can share my ideas written in spreadsheets.

  

  Petru

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  02/06/2018 at 10:54 PM #61805
  Petru

  Hi again,

  I do get ‘syntax error’ when I am using the code (see attached). Help me to fix this error, please. May be I am doing something wrong , but I don’t know where can be.

   

  Regards]

  Petru

  

  Petru

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  02/06/2018 at 11:14 PM #61814
  robertogozzi

  ProScreener does not support graphic keywords, like BACKGROUNDCOLOR etc…, just comment them out. The code above is an indicator, you must work a tiny bit on it to convert it to a ProScreener code.

  Please attach only .ITF files for import and screenshots for examples or to show issues you may encounter, or at most text files. Avoid attaching .PDF and especially .DOCx files, since many members might not have them installed thus reducing your chances to be helped.

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  robertogozzi

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  02/07/2018 at 1:47 AM #61820
  Petru

  I will try. I hope I can make it work.

  

  Petru

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  02/07/2018 at 11:00 AM #61840
  Nicolas

  Fr7 has made an indicator for you (thanks to him), not a screener. Here is my own view of your query:

  bolup=BollingerUp[20](close) boldn=BollingerDown[20](close) diff=bolup-boldn c1 = diff<=lowest[100](diff)*1.1 c2 = bolup>bolup[1] and boldn>boldn[1] c3 = close > bolup c4 = average[7]>average[23] test = c1 and c2 and c3 and c4 screener[test]

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  bolup=BollingerUp[20](close) boldn=BollingerDown[20](close) diff=bolup-boldn   c1 = diff<=lowest[100](diff)*1.1 c2 = bolup>bolup[1] and boldn>boldn[1] c3 = close > bolup c4 = average[7]>average[23]   test = c1 and c2 and c3 and c4   screener[test]

  Not so much results, c1 condition is very restrictive. Are you sure about c2 (where bolling upper band is superior to its previous one AND the same for the bollinger lower band).

   

   

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  Nicolas

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  02/07/2018 at 12:24 PM #61853
  Fr7

  SCREENER Bollinger-Squeeze

  TIMEFRAME(DEFAULT) BS=BollingerUp(close) BI=BollingerDown(close) BS100=BollingerUp[100](close) BI100=BollingerDown[100](close) DIF=BS-BI DIF100=(BI100-BS100) MA7=AVERAGE[7](CLOSE) MA23=AVERAGE[23](CLOSE) MMup=MA7>MA23 MMdown=MA7<MA23 /////////////////////condiTIONS/////////// if DIF>DIF100 AND CLOSE>BS AND MMup then signal = 1////BULL SIGNAL elsif CLOSE<BI and MMdown then signal = -1////BEAR SIGNAL endif SCREENER (signal AS "signal")

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  TIMEFRAME(DEFAULT)   BS=BollingerUp(close) BI=BollingerDown(close) BS100=BollingerUp[100](close) BI100=BollingerDown[100](close) DIF=BS-BI DIF100=(BI100-BS100) MA7=AVERAGE[7](CLOSE) MA23=AVERAGE[23](CLOSE) MMup=MA7>MA23 MMdown=MA7<MA23 /////////////////////condiTIONS/////////// if  DIF>DIF100 AND CLOSE>BS AND MMup  then signal = 1////BULL SIGNAL elsif   CLOSE<BI and MMdown then signal = -1////BEAR SIGNAL endif SCREENER (signal AS "signal")

   

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  Fr7

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  02/07/2018 at 12:28 PM #61859
  Fr7

  Here is the screener. In this are not divergences, you can try mine or Nicolas. And will say what is most appropriate.

  

  Fr7

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  02/08/2018 at 4:20 AM #61945
  Petru

  Hi Nicolas and Fr7,

  Nicolas, you’re right. My conditions are too restrictive and how market behaved in the last few days I don’t have many hits. I have to change a little bit.

  Fr7, it is not what I wanted but for sure can be modified and I can use it. I wanted to compare the actual Bollinger difference with minimum (minimal or lowest) difference between bands in the last 100 periods with the same settings, not Bollinger bands with 100 periods as SMA and 2 standard deviations for BS100 and BI100, may be I wasn’t clear in my request

  Thank you both of you for your help.

  Regards,

  Petru

  

  Petru

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