Bollinger Band Breakout Alerts and Candle Signal Settings
Summary
This document describes an indicator that flags candles breaking through Bollinger Bands. It can mark the signal on a chart, color the candle, display the bands, and show an alert message. The indicator offers two breakout definitions: a candle may open within the bands and close beyond them, or it may open and close outside the bands. Inputs also control the band calculation period and deviation, along with whether bands, signal candles, and alerts appear.
The description explains how to configure and display the signal, with bullish and bearish candles assigned different colors. It does not provide entry or exit rules, a market-specific application, backtest results, or evidence that a band break predicts profitable continuation or reversal. A breakout alert is therefore best understood as a charting aid that identifies price movement relative to volatility bands; users would need separate rules and testing to assess its trading value.
Key ideas
- The indicator marks candles that break through Bollinger Bands.
- A signal can require either an inside open followed by an outside close, or an open and close outside the bands.
- Users can configure the band period and deviation and choose whether to display bands, candles, and alerts.
- The description gives no evidence about the profitability of trading these signals.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.