ZiBoll Bands Using Weighted Highs, Lows, and Close Crossings
Summary
The ZiBoll indicator adapts Bollinger-style bands by calculating weighted moving averages of the bar highs and lows, then offsetting them with a fraction of the close-price standard deviation. A state variable changes when the close moves beyond either band and otherwise retains its previous value. Crossings of that state through zero generate up or down arrows, with the bands and markers intended to make signal locations visible on the chart.
The post supplies indicator logic and parameters, but its author explicitly says the arrows do not align with arrows from a backtest and asks to discuss the discrepancy. It offers no resolution, validated trading rules, or performance statistics. The signals should therefore be treated as a charting concept whose implementation and relationship to backtest results remain uncertain, rather than as a tested entry or exit strategy.
Key ideas
- The indicator centers its lower and upper bands on weighted averages of lows and highs.
- A fraction of close-price standard deviation adjusts each band.
- The close updates a persistent directional state when it crosses outside the bands.
- State changes through zero create chart arrows, but the author reports disagreement with backtest arrows.
- No validated performance results or complete trading rules are provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.