[astropark] Nova Bands — 由astropark 提供的指標

volatility trendanalysis movingaverage forex commodities stocks bullish bearish bands squeeze long short

Dear followers,

today a new analysis and scalping tool for day trading on low timeframes (5-15 minutes) or to plan swing trades on hourly timeframes. It can be used also on high timeframes just for analysis current market trend.

The indicator plots a series of levels which create a nice bands flow.
The slope of levels make you easily understand when price is in consolidation, in uptrend or in downtrend.

The golden rule is always the same: buy low and sell high.
This indicator plots:

3 "price is low here" levels (from dark green to light green)
3 "price is average here" levels
3 "price is high here" levels (from purple to orange)

When bands are flat, price is in consolidation and this is best condition to trade with nova bands.
When price reaches higher bands, you will open a short position with targets below levels, fully closing your position when price hits the average level (black).
Here an example on Bitcoin on 15m using 1h resolution:

The same applies when price reaches lower bands, you will open a long position with targets above levels, fully closing your position when price hits the average level (black).

When bands get nearer and nearer is called "Bands Squeeze": price is next to a main breakout move, volatility is coming!
Here an example of SPX500: after long consolidation and bands getting nearer and neared, we had the breakout, downwards in this case.
In this screenshot you can see what signals algorithm provided:

Our suggestion is to play safe these kind of scenarios, no reason to FOMO buy/sell. Just wait for price consolidation / getting back inside the bands.
For example you would have skip first three buy signals, while you would have longed the last two as price came back inside bands after the big volatility which made price went below bands.

Another example is TSLA stock on 15m with 1h resolution:

Price touched the first bullish level and made a big move upwards, breaking bands with a +90% move.

In this case, you would have skipper first 2 sell signals, while you would have accepted next two with stoploss above recent high.
Acceptable also the other two sell signals, which you may have closed when price retraced to lower levels:

You can of course run trends like this buying on price hitting bullish/lower levels after a long consolidation and sell on price hitting middle and higher levels:

A trader who wants to be a winner must understand that money and risk management are very important, so manage your position size and always have a stop loss in your trades.

Here some examples how the indicator works on different markets:

EURUSD 15m with standard settings and 1h resolution