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Baus Bands
The Baus Bands are a simplified version of another one of my trend following indicators, the Neapolitan Bands. This version only shows the trend trading zones in green and red. An additional 21 EMA with an ATR band was added as part of my own trend trading rules using these bands.
How do I read this indicator?
The trend trading rules are exactly the same as the default Neapolitans, but include an extra condition.
A trend has started once 2 conditions are met:
With those conditions met, if you expect the trend to continue, trade pull-backs to the blue band in the direction of the trending cloud.
Isn't this just a 21 EMA trading pull-backs strategy?
No. The 21 EMA alone is not sufficient in my opinion to define a range or trend technically. Always buying the 21 EMA pull-back, especially in a range, is not a great strategy by itself unless you've already identified price as trending. Baus Bands adds that trend identification.
Why make this?
Baus Bands show the conditions I personally use for catching trends and identifying ranges with these indicators, and shows only the information I use.
What's the purpose of the ATR band around the 21 EMA?
Sometimes price will open and close below the 21 EMA and cause some technical analysts will say the trend is over. I added the ATR specifically to get a volatility based, upper and lower bound range around the 21 EMA. that way I have an acceptable price range where price could move past the 21 EMA and still keep a trend valid using similar rules. I then saw that so long this ATR band (not the 21 EMA itself) was touching those trending clouds, then the trend has a good chance of continuing as long as that was true.
How do I read this indicator?
- Is the blue band between and not touching the green or red clouds? The condition is ranging.
- Is the blue band touching the green cloud? The condition is a bullish trend.
- Is the blue band touching the red cloud? The condition is a bearish trend.
The trend trading rules are exactly the same as the default Neapolitans, but include an extra condition.
A trend has started once 2 conditions are met:
- Price has entered either trending cloud.
- The 21 EMA ATR band in blue is within the same cloud.
With those conditions met, if you expect the trend to continue, trade pull-backs to the blue band in the direction of the trending cloud.
Isn't this just a 21 EMA trading pull-backs strategy?
No. The 21 EMA alone is not sufficient in my opinion to define a range or trend technically. Always buying the 21 EMA pull-back, especially in a range, is not a great strategy by itself unless you've already identified price as trending. Baus Bands adds that trend identification.
Why make this?
Baus Bands show the conditions I personally use for catching trends and identifying ranges with these indicators, and shows only the information I use.
What's the purpose of the ATR band around the 21 EMA?
Sometimes price will open and close below the 21 EMA and cause some technical analysts will say the trend is over. I added the ATR specifically to get a volatility based, upper and lower bound range around the 21 EMA. that way I have an acceptable price range where price could move past the 21 EMA and still keep a trend valid using similar rules. I then saw that so long this ATR band (not the 21 EMA itself) was touching those trending clouds, then the trend has a good chance of continuing as long as that was true.
開源腳本
本著TradingView的真正精神，此腳本的創建者將其開源，以便交易者可以查看和驗證其功能。向作者致敬！雖然您可以免費使用它，但請記住，重新發佈程式碼必須遵守我們的網站規則。
Joe Baus, bausbenchmarks.com
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。
開源腳本
本著TradingView的真正精神，此腳本的創建者將其開源，以便交易者可以查看和驗證其功能。向作者致敬！雖然您可以免費使用它，但請記住，重新發佈程式碼必須遵守我們的網站規則。
Joe Baus, bausbenchmarks.com
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。