The SVEVolatilityBands described by Sylvain Vervoort in his article in this issue, “Within The Volatility Band,” can be implemented with a few of NeuroShell Trader’s 800+ indicators. Simply select “New indicator” from the Insert menu and use the indicator wizard to create the following indicators:
TypicalPrice: Average3( High, Low, Close ) TypicalRange: If ( A>=B( TypicalPrice, Lag(TypicalPrice,1), Subtract(TypicalPrice, Lag(Low,1), Subtract( Lag(TypicalPrice), Low ) ) Deviation: Multiply( SimpleMovAvg( TypicalRange, 13), 3.55 MedianAvg: ExpAvg( TypicalPrice, 8 ) UpperBand: Add2( ExpAvg(MedianAvg, 8 ), ExpAvg( Deviation, 8 ) ) LowerBand: Subtract(ExpAvg(MedianAvg, 8 ), Multiply( ExpAvg( Deviation, 8 ), 0.9) ) MedianBand: SimpleMovAvg( MedianAvg, 8 )
Users of NeuroShell Trader can go to the Stocks & Commodities section of the NeuroShell Trader free technical support website to download a copy of this or any previous Traders’ Tips.
A sample chart is shown in Figure 6.
FIGURE 6: NEUROSHELL TRADER, VOLATILITY BANDS. This NeuroShell Trader chart displays Sylvain Vervoort’s SVEVolatilityBands with a deviation factor of 1.