if the line is red mean the majority of the conditions are turning bull and a possible drop can happen so in a way this is a contrarian indicator
this works only into uptrend on down trend the line will be always yellow
use trend lines and channels to determine trends for example
to increase sensibility lower the "10" to 8 or 7
These Bollinger Bands are exponential because the variance is calculated using the exponential moving average, rather than just adding the normal standard deviation to the ema. This may be more useful because the exponential standard deviation should be more sensitive to near term increases or decreases in volatility.
Please do not forget that Bollinger Bands...
I've been working on a top and bottom picker script over the past couple of weeks, based on RSI of multiple timeframe closing price. It've been a pretty good trading system that's tested over the last meteoric rise from 220~270 and back down to 230 right now, and I think it should be released to the community.
Sure, I'm not worried about this strategy not working...