Bridge Bands: Blending a Bridge Range with Bollinger Bands

Summary

Bridge Bands combine a price-based Bridge Range, Bollinger Bands, and a Hurst exponent to create a changing range around a security’s price. The described weighting uses Bollinger Bands when the Hurst estimate is near 0.5; as the estimate moves farther from that value, the Bridge Range has greater influence. The supplied indicator implementation calculates the components over a 15-period window and constructs the band boundaries from the two ranges. It also plots a trend reference at the midpoint of a 63-period Donchian channel, treating price above that midpoint as bullish and price below it as bearish.

The document provides formulas and platform code, so it explains how the indicator is assembled, but it reports no empirical tests, predictive accuracy, or trading results. It does not establish that the Hurst-based blend improves risk estimates, and the bands should not be read as guaranteed price limits. The displayed trend rule is a simple directional classification, with no entry, exit, or position-sizing rules. The code is an implementation example whose behavior may depend on platform conventions and data settings.

Key ideas

• Bridge Bands blend a Bridge Range with Bollinger Bands using the Hurst estimate as a weighting factor.
• The weighting favors Bollinger Bands near a Hurst value of 0.5 and gives more influence to the Bridge Range farther from that value.
• The implementation also plots a Donchian-channel midpoint as a simple bullish or bearish reference.
• The document supplies formulas and platform code but no evidence of tested performance or improved forecasting.
• The indicator defines ranges and direction cues without specifying a complete trading system.

Tags

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