Bollinger Band Reversals with a Volatility-Based Trend Line

Summary

This chart strategy combines Bollinger-style bands with a custom trend line. The bands use an exponential moving average and a standard-deviation width based on a 30-bar lookback. The source records prices when the input crosses a band, then uses those stored levels in rolling high and low calculations. A separate line is derived from a volume-price calculation, smoothed, and adjusted by an average true range measure; state rules switch that line between rising and falling trend levels. The displayed trend line is labeled as a SuperTrend, and crossings against the rolling levels generate long or short entries.

The document provides parameter values and backtest settings for BTC/USDT on Binance from May 2021 to May 2022, but reports no returns, drawdowns, or other test outcomes. It is therefore a description of indicator mechanics rather than evidence of profitability. The source contains intertwined calculations and stateful conditions, so the intended behavior may be difficult to infer from the short label alone. Band and trend-line signals can lag or reverse repeatedly in choppy markets; no explicit position sizing or risk controls are described.

Key ideas

• The band calculation uses an exponential moving average and a standard-deviation width over a configurable lookback.
• The source stores band-crossing prices and uses rolling extremes to form later signal levels.
• A volume-price-derived value and average true range adjustments drive a stateful rising or falling trend line.
• Crossings between that line and rolling levels trigger long or short entries.
• The document lists a year-long BTC/USDT test configuration but supplies no performance results or explicit risk controls.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.