Fibonacci Bollinger Bands Around a Volume-Weighted Average

Summary

This Pine Script indicator plots a volume-weighted moving average as its center line and builds six upper and six lower bands from the standard deviation of the selected price source. The bands use Fibonacci-related fractions of a scaled deviation, from 0.236 through 1.0, creating graduated envelopes around the central value. The supplied defaults use a 200-period lookback, an HLC3 price source, and a deviation multiplier of 3.

The code defines an overlay visualization, with the outermost bands emphasized by color and line width. It provides indicator construction details but no rules for interpreting band touches, generating trades, or managing risk. There are no backtest results or evidence that the Fibonacci fractions improve on conventional volatility bands; users would need to choose parameters and evaluate signals for their market and timeframe.

Key ideas

• The center of the indicator is a volume-weighted moving average of the selected price source.
• Upper and lower bands are placed at six fractions of a scaled rolling standard deviation.
• The stated defaults use a 200-period window, HLC3 input, and a multiplier of 3.
• The code specifies a chart overlay but does not define entries, exits, or risk controls.
• No performance evidence is given for the Fibonacci spacing of the bands.

Tags

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