Volatility Support Resistance Indicator

• 01/09/2018 at 2:43 PM #58619
  Ivan Donatiello

  Hello everyone here Ivan Donatiello,

  I am studying Kirk Northington’s book “Volatility-Based Technical Analysis: Strategies for Trading the Invisible” 2009 USA.

  I am intrigued about an indicator called N Bande, but the code is the owner of MetaStock.

  However I created a variant that gives me good triggers using the Bollinger Bands. The indicator I want to create must do the following.

  1. Create a horizontal line when today’s Bollinger + is lower than yesterday’s bolligenger +.
  2. Create 3 liene that have the value of the 10-period ATR, subtracting from the value of point 1.

  The exact opposite for Bollinger -.

  Each time a new condition is created, as in point 1, the line must be updated, while keeping the old values on the graph history. It should appear a broken leena the most important values are the most recent.

  Below is an image to start with.

  Thank you all

  

  Ivan Donatiello

  Participant

  Topics: 10

  Replies: 25

  Been thanked: 2 times
  01/09/2018 at 2:58 PM #58622
  Nicolas

  Remind me these topics:

  https://www.prorealcode.com/topic/newbie-coding-request-bb-sr/

  https://www.prorealcode.com/topic/bands-n-metastock/

  Your version/interpretation of this indicator is easier to code.

  So, each time the condition 1 is met, we update the whole lines calculation? right?

  

  Nicolas

  Keymaster

  Topics: 81

  Replies: 20863

  Been thanked: 4773 times
  01/09/2018 at 3:10 PM #58627
  Ivan Donatiello

  Yes Nicolas, whenever the condition occurs 1, we update the R1. The same thing for the S1 for the Bolloger –

  Study the topics that you have link to me 🙂

  

  Ivan Donatiello

  Participant

  Topics: 10

  Replies: 25

  Been thanked: 2 times
  01/09/2018 at 3:41 PM #58634
  Nicolas

  Ok, so this is the indicator that plot the upper and lower bollinger bands as support/resistance lines when they quit the expansion phase (phase 2). Other lines are calculated with an ATR 10 periods. Sometimes lines are overlapping and it is a bit confusing IMO.

  //https://www.prorealcode.com/topic/volatility-support-resistance-indicator/ //Nicolas @ prorealcode.com upper = BollingerUp[20](close) lower = BollingerDown[20](close) atr = averagetruerange[10] if upper<upper[1] and upper[1]>upper[2] then r1 = upper rr2 = upper - atr r3 = upper - 2*atr r4 = upper - 3*atr endif if lower>lower[1] and lower[1]<lower[2] then s1 = lower s2 = lower + atr s3 = lower + 2*atr s4 = lower + 3*atr endif return r1 coloured(200,200,0) style(line,2) as "r1", rr2 coloured(100,100,100) style(dottedline,1) as "r2", r3 coloured(100,100,100) style(dottedline,1) as "r3", r4 coloured(100,100,100) style(dottedline,1) as "r4", s1 coloured(200,200,0) style(line,2) as "s1", s2 coloured(100,100,100) style(dottedline,1) as "s2", s3 coloured(100,100,100) style(dottedline,1) as "s3", s4 coloured(100,100,100) style(dottedline,1) as "s4"

  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

  //https://www.prorealcode.com/topic/volatility-support-resistance-indicator/ //Nicolas @ prorealcode.com upper = BollingerUp[20](close) lower = BollingerDown[20](close) atr = averagetruerange[10]   if upper<upper[1] and upper[1]>upper[2] then r1 = upper rr2 = upper - atr r3 = upper - 2*atr r4 = upper - 3*atr endif   if lower>lower[1] and lower[1]<lower[2] then s1 = lower s2 = lower + atr s3 = lower + 2*atr s4 = lower + 3*atr endif   return r1 coloured(200,200,0) style(line,2) as "r1", rr2 coloured(100,100,100) style(dottedline,1) as "r2", r3 coloured(100,100,100) style(dottedline,1) as "r3", r4 coloured(100,100,100) style(dottedline,1) as "r4", s1 coloured(200,200,0) style(line,2) as "s1", s2 coloured(100,100,100) style(dottedline,1) as "s2", s3 coloured(100,100,100) style(dottedline,1) as "s3", s4 coloured(100,100,100) style(dottedline,1) as "s4"

   

   

  

  Nicolas

  Keymaster

  Topics: 81

  Replies: 20863

  Been thanked: 4773 times
  01/09/2018 at 4:46 PM #58688
  Ivan Donatiello

  Thanks Nicolas 🙂

  Then the indicator worked well but it gave a delay period. In addition, the Bollinger caused the price to go out of the volatility bands too often, so I tried using bands built by linear regression. It seems that they work well. Below are the two codes and the screeshot.

  Bands of volatility equal to the bollinger but with the measure of central tendency linear regression:

  Linear Regression Band - Similar on Bollinger Band

  //https://www.prorealcode.com/topic/volatility-support-resistance-indicator/ //Ivan @ prorealcode.com period=10 x1=LinearRegression[period](close) x2=2.5*STD[20](close) h1=x1+x2 h2=x1-x2 return h1,h2, x1

  1 2 3 4 5 6 7 8 9 10 11 12 13

  //https://www.prorealcode.com/topic/volatility-support-resistance-indicator/ //Ivan @ prorealcode.com   period=10   x1=LinearRegression[period](close) x2=2.5*STD[20](close) h1=x1+x2 h2=x1-x2   return h1,h2, x1

  Indicator of Nicolas with the correction of the delay period:

  volatility-support-resistance-indicator

  //https://www.prorealcode.com/topic/volatility-support-resistance-indicator/ //Nicolas @ prorealcode.com upper = LinearRegression[10](close)+2.5*std[20](close) lower = LinearRegression[10](close)-2.5*std[20](close) atr = averagetruerange[40] if upper<upper[1] and upper[1]>upper[2] then r1 = upper[1] rr2 = upper[1] - atr r3 = upper[1] - 2*atr r4 = upper[1] - 3*atr endif if lower>lower[1] and lower[1]<lower[2] then s1 = lower[1] s2 = lower[1] + atr s3 = lower[1] + 2*atr s4 = lower[1] + 3*atr endif return r1 coloured(200,200,0) style(line,2) as "r1", rr2 coloured(100,100,100) style(dottedline,1) as "r2", r3 coloured(100,100,100) style(dottedline,1) as "r3", r4 coloured(100,100,100) style(dottedline,1) as "r4", s1 coloured(200,200,0) style(line,2) as "s1", s2 coloured(100,100,100) style(dottedline,1) as "s2", s3 coloured(100,100,100) style(dottedline,1) as "s3", s4 coloured(100,100,100) style(dottedline,1) as "s4"

  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

  //https://www.prorealcode.com/topic/volatility-support-resistance-indicator/ //Nicolas @ prorealcode.com       upper = LinearRegression[10](close)+2.5*std[20](close) lower = LinearRegression[10](close)-2.5*std[20](close) atr = averagetruerange[40]   if upper<upper[1] and upper[1]>upper[2] then r1 = upper[1] rr2 = upper[1] - atr r3 = upper[1] - 2*atr r4 = upper[1] - 3*atr endif   if lower>lower[1] and lower[1]<lower[2] then s1 = lower[1] s2 = lower[1] + atr s3 = lower[1] + 2*atr s4 = lower[1] + 3*atr endif   return r1 coloured(200,200,0) style(line,2) as "r1", rr2 coloured(100,100,100) style(dottedline,1) as "r2", r3 coloured(100,100,100) style(dottedline,1) as "r3", r4 coloured(100,100,100) style(dottedline,1) as "r4", s1 coloured(200,200,0) style(line,2) as "s1", s2 coloured(100,100,100) style(dottedline,1) as "s2", s3 coloured(100,100,100) style(dottedline,1) as "s3", s4 coloured(100,100,100) style(dottedline,1) as "s4"

  It would be nice to combine in a single indicator, but even so it’s more than good 🙂

  Below is the screenshot. Note I put the invisible central blind.

  Thanks Nicolas  🙂
  

  

  Ivan Donatiello

  Participant

  Topics: 10

  Replies: 25

  Been thanked: 2 times
  01/09/2018 at 5:36 PM #58702
  Nicolas

  Change the last line of your indicator by this one and you’ll have an “all-in-one” indi.

  return r1 coloured(200,200,0) style(line,2) as "r1", rr2 coloured(100,100,100) style(dottedline,1) as "r2", r3 coloured(100,100,100) style(dottedline,1) as "r3", r4 coloured(100,100,100) style(dottedline,1) as "r4", s1 coloured(200,200,0) style(line,2) as "s1", s2 coloured(100,100,100) style(dottedline,1) as "s2", s3 coloured(100,100,100) style(dottedline,1) as "s3", s4 coloured(100,100,100) style(dottedline,1) as "s4", upper, lower

  1

  return r1 coloured(200,200,0) style(line,2) as "r1", rr2 coloured(100,100,100) style(dottedline,1) as "r2", r3 coloured(100,100,100) style(dottedline,1) as "r3", r4 coloured(100,100,100) style(dottedline,1) as "r4", s1 coloured(200,200,0) style(line,2) as "s1", s2 coloured(100,100,100) style(dottedline,1) as "s2", s3 coloured(100,100,100) style(dottedline,1) as "s3", s4 coloured(100,100,100) style(dottedline,1) as "s4", upper, lower

   

  

  Nicolas

  Keymaster

  Topics: 81

  Replies: 20863

  Been thanked: 4773 times
  01/09/2018 at 6:31 PM #58718
  Billy Ray Valentine

  Non ho capito come fare ad unire i due indicatori, potete riscriverlo voi il codice finale?

  

  Billy Ray Valentine

  Participant

  Topics: 17

  Replies: 35

  Been thanked: 1 time
  01/09/2018 at 9:21 PM #58747
  Ivan Donatiello

  This is my final version. I made some changes because I saw that volatility changes affect both the compressions and the expansions.

  So the inidator treats supports and resistance on the expansion returns, in the same way supports and resistance on the beginning of volatility expansion.

  It would be nice to be able to put the names to the supports and resistors, example above or to finaco to the line S1, S2, R1, R2 etc. but I do not know how to do it 🙂

  Final Versione Whitout the text (S1,R1 ecc)

  //https://www.prorealcode.com/topic/volatility-support-resistance-indicator/ //Nicolas @ prorealcode.com upper = LinearRegression[10](close)+2.5*std[20](close) lower = LinearRegression[10](close)-2.5*std[20](close) atr = averagetruerange[40] if upper<upper[1] and upper[1]>upper[2] then r1 = upper[1] rr2 = upper[1] - atr endif if lower>lower[1] and lower[1]<lower[2] then s1 = lower[1] s2 = lower[1] + atr endif if upper>upper[1] and upper[1]<upper[2] then r3 = upper[1] r4 = upper[1] - atr endif if lower<lower[1] and lower[1]>lower[2] then s3 = lower[1] s4 = lower[1] + atr endif period=10 x1=LinearRegression[period](close) x2=2.5*STD[20](close) h1=x1+x2 h2=x1-x2 return r1 coloured(100,100,0) style(dottedline,1) as "r1", rr2 coloured(100,100,0) style(dottedline,1) as "r2", s1 coloured(100,100,0) style(dottedline,1) as "s1", s2 coloured(100,100,0) style(dottedline,1) as "s2", r3 coloured(100,100,100) style(dottedline,1) as "r3", r4 coloured(100,100,100) style(dottedline,1) as "r4", s3 coloured(100,100,100) style(dottedline,1) as "s3", s4 coloured(100,100,100) style(dottedline,1) as "s4", h1 coloured(255,140,0) style(line,2) as "h1", h2 coloured(255,140,0) style(line,2) as "h2", x1

  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44

  //https://www.prorealcode.com/topic/volatility-support-resistance-indicator/ //Nicolas @ prorealcode.com   upper = LinearRegression[10](close)+2.5*std[20](close) lower = LinearRegression[10](close)-2.5*std[20](close) atr = averagetruerange[40]   if upper<upper[1] and upper[1]>upper[2] then r1 = upper[1] rr2 = upper[1] - atr   endif   if lower>lower[1] and lower[1]<lower[2] then s1 = lower[1] s2 = lower[1] + atr   endif   if upper>upper[1] and upper[1]<upper[2] then r3 = upper[1] r4 = upper[1] - atr   endif   if lower<lower[1] and lower[1]>lower[2] then s3 = lower[1] s4 = lower[1] + atr   endif   period=10 x1=LinearRegression[period](close) x2=2.5*STD[20](close) h1=x1+x2 h2=x1-x2       return r1 coloured(100,100,0) style(dottedline,1) as "r1", rr2 coloured(100,100,0) style(dottedline,1) as "r2",  s1 coloured(100,100,0) style(dottedline,1) as "s1", s2 coloured(100,100,0) style(dottedline,1) as "s2", r3 coloured(100,100,100) style(dottedline,1) as "r3", r4 coloured(100,100,100) style(dottedline,1) as "r4",  s3 coloured(100,100,100) style(dottedline,1) as "s3", s4 coloured(100,100,100) style(dottedline,1) as "s4", h1 coloured(255,140,0) style(line,2) as "h1", h2 coloured(255,140,0) style(line,2) as "h2", x1

   

  

  Ivan Donatiello

  Participant

  Topics: 10

  Replies: 25

  Been thanked: 2 times
  01/09/2018 at 10:11 PM #58759
  Sofitech

  Could you give some explanation about how this indicator is used ? Is he part of a trading method described in the book ?

  

  Sofitech

  Participant

  Topics: 55

  Replies: 148

  Been thanked: 10 times
  01/09/2018 at 10:50 PM #58761
  robertogozzi

  Al wrote:

  Non ho capito come fare ad unire i due indicatori, potete riscriverlo voi il codice finale?

  Nel forum in lingua Inglese si prega di usare l’inglese. Grazie.

  1 user thanked author for this post.

  Billy Ray Valentine

  

  robertogozzi

  Moderator

  Topics: 69

  Replies: 17153

  Been thanked: 4040 times
  01/10/2018 at 1:58 AM #58787
  Ivan Donatiello

  A question, sorry for the in-experience. But if we program an indicator that is similar to an owner, as in this case, is it a violation of copyright?

  Otherwise, delete everything immediately!

  

  Ivan Donatiello

  Participant

  Topics: 10

  Replies: 25

  Been thanked: 2 times
  01/11/2018 at 9:07 AM #58956
  Nicolas

  We are absolutely not violating copyright here, and as I said your code is not near to the original version. If we can’t plot lines on a chart based on standard deviation from a mean, because someone already did it in a book, well .. a lot of codes around here should de deleted also 🙂

  

  Nicolas

  Keymaster

  Topics: 81

  Replies: 20863

  Been thanked: 4773 times
  01/11/2018 at 6:45 PM #59090
  Leo

  Ivan, can you explain the strategy then. Thanks

  

  Leo

  Participant

  Topics: 17

  Replies: 357

  Been thanked: 144 times
  01/13/2018 at 3:05 AM #59316
  Ivan Donatiello

  The strategy is based on the mathematics of volatility. One method that you find in the book of the post above, is 500 pages of stuff difficult to answer so quickly.

  

  Ivan Donatiello

  Participant

  Topics: 10

  Replies: 25

  Been thanked: 2 times
  02/05/2019 at 4:05 PM #90523
  Jordan Belgrave

  anybody knows why Trading View does not accept this script ?

  

  Jordan Belgrave

  Participant

  Topics: 0

  Replies: 1

  Been thanked: 0 times
• Author
  Posts