Multicolor Bollinger Bands - Market Phases

28 oct 2019

Hi everyone

Hope you're all doing well 😘

Today I feel gracious and decided to give to the community. And giving not only an indicator but also a trading method

This trading method shows how a convergence based on moving averages is tremendous

Multicolour Bollinger Bands indicator that indicates market phases.
It plots on the price chart, thanks to different color zones between the bands, a breakdown of the different phases that the price operates during a trend.
The different zones are identified as follows:

- red color zone: trend is bearish, price is below the 200 periods moving average
- orange color zone: price operate a technical rebound below the 200 periods moving average
- yellow color zone: (phase 1 which indicate a new bearish cycle)
- light green zone: (phase 2 which indicate a new bullish cycle)
- dark green zone: trend is bullish, price is above the 200 periods moving average
- grey color zone: calm phase of price
- dark blue color zone: price is consolidating in either bullish or bearish trend
- light blue zones: price will revert to a new opposite trend (either long or short new trend)

By identifying clearly the different market phases with the multicolor Bollinger bands, the market entries by either a the beginning of a new trend or just after a rebound or a consolidating phase is easier to spot on.

Trade well and trade safe
Dave