Bitcoin / US Dollar Perpetual Inverse Swap ContractBitMEX
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There are quite a few band indicators out there, ATR, VWAP, Bollinger, Fib, etc. however, I could never find anything that could scale accurately during periods of high volatility. That brought me to writing this indicator.
These bands use my Volume-Weighted Anchored Trend (VWAT) for the basis and highlight the standard deviation that you might expect high probability reversals to occur from.
I use these bands in my own trading system. The default settings are quite effective but you're able to modify the std multiplier within the settings as you see fit.
Generally, I would only play reversals during a ranging environment, however even if the market is trending, these bands will assist in spotting a weakening trend.
An ideal trend reversal would be a wick into the outer band, followed shortly by a weaker sweep of the previous move and wicking the inner band.
Hopefully you'll find this useful in your trading!
long side has the bands overlapping, but the short side does not, simple fix