ORTI Bollinger Bands V1 (Multiple Moving Average)

The "ORTI Bollinger Bands V1 (Multiple Moving Average)" is a public scrypt, as a redesigned and recalculated set of the common plotted lines with the typical two "Standard Deviations" (positively and negatively) away from the original calculation of a "Simple Moving Average" of the security's price.

But now, with the option to convert the "Simple Moving Average" to adapt into 9 different kinds of "Moving Averages", to have a much more robust indicator which in turn would serve both as "Bollinger Bands" and by any of the most used "Moving Averages", a hybrid basically.

The following options to convert the "Simple Moving Average" ( SMA ) to:
Exponential Moving Average ( EMA )
Weighted Moving Average ( WMA )
Arnaud Legoux Moving Average ( ALMA )
Hull Moving Average ( HMA )
Volume-weighted Moving Average ( VWMA )
• Least Square Moving Average ( LSMA )
Smoothed Moving Average ( SMMA )
Double Exponential Moving Average ( DEMA )

As in traditional "Bollinger Bands", the "Standard Deviations" are still a measure of volatility , when markets become more volatile, bands widen, during the less volatile periods, the bands contract.

A common fact in trading is that, prices vary most of the time and there is a lot of truth in this assertion, since the markets consolidate mainly as bullish and bearish . Market trends are sometimes very rare, so trading them may not be as easy as you might think. If we look at prices in this way, we can define the trend as a deviation from the norm (rank).

Usually, most Traders use “Moving Averages” to identify commercial areas and analyze markets. A “Moving Average” helps the Trader isolate the trend a lot and can also indicate when a trend may be receding.

The importance of using any of the “Moving Averages” in the “Bollinger Bands”, becomes a reality and reveals the average price of a marketable instrument in a given period of time. However, there are different ways to calculate the averages, and that is why there are different types of “Moving Averages”. They are called "in motion" because, as the price moves, new data is added to the calculation, thus changing the average.

The base of the “Bollinger Bands” measures and represents the deviation or volatility of the price and this is the reason why they can be very useful to identify a trend. Even the use of two sets of “Bollinger Bands”, one generated with the parameter "one Standard Deviation" and the other with the typical configuration of "two Standard Deviations", can help us to see the price in a different way.

Another great advantage of “Bollinger Bands” is that, they adjust dynamically as volatility increases and decreases. As a result, the “Bollinger Bands” automatically expand and contract in synchronization with the price action, creating an envelope of precise trends.

Note: The previous calculation example is not the default; the parameters can be adjusted according to the criteria of the merchant.

For more technical information: https://www.investopedia.com/

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// ORTI Bollinger Bands V1 (Multiple Moving Average)
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// Author: Eduardo Ortí
// Email: ortiemm@protonmail.com
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