Skip to main content

Kirshenbaum Bands VertexFX Indicator

The Kirshenbaum Bands is a powerful VertexFx client-side indicator which attempts to reduce the lag and enhance the accuracy of the Bollinger Bands. It is an improvement over the Bollingers Bands and is used primarily to identify trend reversals.

One of the main disadvantages of the Bollinger Bands is that it has lag and is slow to respond to trend reversals. The standard deviation is calculated in a linear fashion - the recent price movements have the same weightage as older price movements. As a result, it is slow to respond to the recent price movements. The Kirshenbaum Bands overcomes this issue and giving a higher weightage to the recent price movements. Likewise, if uses Exponential Moving Average (EMA) as compared to the Simple Moving Average (SMA) of the Bollinger Bands. Since higher weightage is given to recent price movements, Kirshenbaum Bands responds to trend reversals quickly.
In the first step, we calculate the moving average of the specified price field (BAND_PRICE) over the recent candles (BAND_PERIOD) based on the moving average method (BAND_METHOD). By default we use Exponential Moving Average as it yields better performance.
In the second step, we calculate the standard deviation. However, instead of using equal weightage, the recent candles are assigned higher weightage. So, if the BAND_PERIOD is set to 21, then the recent error-mean is multiplied by 21, the previous one by 20 and so on. Finally, we calculate the standard deviation.
The upper band is calculated by multiplying the standard deviation with its multiplier and adding it to the moving average. Similarly, the lower band is calculated by multiplying the standard deviation with its multiplier and subtracting it from the moving average.
Compared to the Bollinger Bands, it has greater response to price movements and can identify reversals

BUY / EXIT SHORT - Enter LONG (or exit SHORT) at the close of the candle when the price closes above the lower Kirshenbaum Band (RED) from below. The stop-loss can be set to the nearest Swing Low.

SHORT / EXIT LONG - Enter SHORT (or exit LONG) at the close of the candle when the price closes below the upper Kirshenbaum Band (GREEN) from above. The stop-loss can be set to the nearest Swing Low.

Comments

Popular posts from this blog

CCI Filter VertexFX Indicator

CCI Filter indicator is VertexFX client-side indicator script based on the Commodity Channel Index -CCI and Moving Average methods. The Commodity Channel Index (CCI) is a powerful indicator that provides important information on the trend. It is cyclical in nature and follows price closely. When the CCI has bottomed out below zero and is rising gradually, it implies that the market is rising and bullish. On the contrary, when the CCI has peaked and is falling gradually, it implies that the market is falling and bearish in nature. This is combined with the Moving Average of the Commodity Channel Index (CCI) which provides crossover signals. To calculate the CCI_Filter indicator, we first calculate the Commodity Channel Index (CCI) over the recent CCI_PERIOD bars. The CCI PRICE specifies the price field to be used to calculate the CCI indicator. This is the BLUE component of the indicator. In the next step, we calculate the Moving Average of the CCI over the recent MA_PERIOD bars. T...

Follow Line VertexFX Indcator

FollowLine is a powerful VertexFX indicator based on the Bollinger Bands (BB) indicator. The Bollinger Bands indicator is a powerful indicator to identify trading ranges. However it cannot identify how far the trend will continue, or when the trend will reverse. The FollowLine indicator employs a combination of Bollinger Bands, Moving Average and Average True Range to identify start and reversal of trend with minimal lag. The FollowLine indicator generates BUY and SELL arrows when the trade setups identified. Likewise, when the trend turns bullish the indicator is displayed in BLUE, and when bearish the indicator is displayed in RED. In the first step, we calculate the upper and lower Bollinger Bands using the BB_PERIOD and BB_DEVIATION parameters. We filter for condition when the price closes above the upper Bollinger Band, or below the lower Bollinger Band. If USE_ATR_FILTER is set to true then the ATR value is added to the upper Bollinger Band, or subtracted from the lower Bollinge...