Volatility envelopes with lower/mid/upper variants. You can use any single line (e.g., BBM midline vs a moving average).
This app uses a single length for Donchian’s both sides and caps Bollinger’s length ≤ 150.
Bollinger Bands were popularized by John Bollinger in the 1980s as a way to visualize relative price highness or lowness. The midline is typically a simple moving average. The upper and lower bands sit a chosen number of standard deviations above and below the midline, expanding during volatile periods and contracting (a “squeeze”) during quiet periods. Traders often use squeezes to anticipate breakouts, riding the outside band in strong trends and reverting to the midline during ranges.
Typical defaults are length = 20 and std = 2.0. Increasing std reduces the number of touches/crosses and filters noise; decreasing it increases sensitivity. As with all cross strategies in this system, signals are evaluated only on closed bars and executed on the next bar’s open.
{ "type": "bbm", "factors": { "length": 20, "std": 2.0, "offset": 0 } }
Keltner Channels are attributed to Chester W. Keltner, later modernized to use an average true range for band width. The basis is a moving average of price and the envelope expands or contracts with volatility as measured by range. Compared to Bollinger Bands, Keltner’s use of range rather than variance often yields a smoother, more trend‑following envelope.
Common settings are length = 20 and scalar = 2.0. Increase scalar in choppy markets to reduce flips; decrease it to make the channel more sensitive. The basis line (KCB) works well as a central reference against a faster moving average for cross signals.
{ "type": "kcu", "factors": { "length": 20, "scalar": 2.0, "offset": 0 } }
Donchian Channels, popularized by Richard Donchian, mark recent extremes: the highest high and lowest low over a window. The midline is the mean between them. They are often used for breakout systems: a price close beyond the upper boundary suggests upward breakout momentum, while a close below the lower boundary suggests downside breakout.
A common length is 20. Shorter windows react faster but whipsaw more in ranges; longer windows catch larger, less frequent moves. In this app, signals are still formed by the closed‑bar cross of two bands (for example, DCM as second vs an EMA as first) rather than by boundary touches alone.
{ "type": "dcm", "factors": { "length": 20, "offset": 0 } }
In this system, a signal occurs when the difference (second − first) changes sign between two consecutive closed bars. If first is above second on the crossing bar, the direction is SHORT; otherwise LONG. Orders are placed at the open of the bar immediately following the crossing bar. This “closed‑bar signal, next‑open execution” rule avoids using incomplete data and makes results reproducible.
Avoid basing signals on forming bars; wait for the candle to close. Extremely small length values or tight std/scalar settings can cause frequent whipsaws in ranging markets. Non‑zero offset can introduce unintended look‑ahead and break parity; keep it at 0. Finally, parameters should be tuned per symbol and timeframe — trending pairs benefit from wider channels and slower baselines; ranging pairs may need tighter channels but stronger filters.