is a classic indicator that uses a of 20 periods, along with plots of upper and lower bands that are 2 standard deviations away from the basis line. These bands help visualize price and trend based on where the price is, in relation to the bands.
The strategy doesn't take into account any other parameters such as / / Fundamentals etc, so user must use discretion based on confirmations from another indicator or based on fundamentals. The strategy results are based on purely long and short trades and doesn't take into account any user defined targets or stop losses.
The strategy works great when the price closes above/below upper/lower bands with continuation on next bar. It is definitely useful to have this strategy or the filter along with other indicators to get early glimpse of breach/fail of bands on candle close during BB squeeze or based on .
This can be used on Heikin Ashi candles for spotting trends, but HA candles are not recommended for trade entries as they don't reflect true price of the asset.
The strategy settings default is 55 and 1 standard deviation for filter, but these can be changed from settings.
It is definitely worth reading the 22 rules of written by John if interested in trading successfully.
Free Scripts - http://bit.ly/Free-Scripts