Better_Bollinger_Band - indicator for MetaTrader 5

Better_Bollinger_Band – indicator MetaTrader 5

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Better Bollinger Band is a Bollinger Band with improved bands calculation.

The October 1998 issue of Futures features the article “Better Bollinger Bands” by Dennis McNicholl, in which the author recommends improving BB by modifying:
– center line equations
– another equation for calculating the bands.

These bands called DEnvelope with the proposed changes follow the price more accurately and respond to volatility changes faster.

The indicator has two input parameters:

  • Period – calculation period
  • Deviation – deviation value

Calculation:

Central = ((2.0-Alpha) * MT - UT) / (1.0-Alpha)
Top = Central + Deviation * DT2
Bottom[i] = Central[i]-Deviation * DT2

where:

MT = Alpha * Median+(1.0-Alpha) * PrevMT
UT = Alpha * MT+(1.0-Alpha) * PrevUT
Median = (High+Low) / 2.0
DT2 = ((2.0-Alpha) * MT2-UT2) / (1.0-Alpha)
MT2 = Alpha * Abs(Median-Central) + (1.0-Alpha) * PrevMT2
UT2 = Alpha * MT2+(1.0-Alpha) * PrevUT2
Alpha = 2.0 / (1.0+Period)


Better_Bollinger_Band – indicator MetaTrader 5
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