Rubber Band Indicator

[neal51 10]

How to use: Wait for the purple lines to expand, showing a over sold or bought condition. When the red line crosses through the top or bottom purple band, go long or short.

RB.ELD

[daedalus 10]

Looks to be a really solid concept! Can I ask what its based off of? Almost looks like a modified DMI?

[neal51 10]

Not sure where it even came from, I had this indicator since 2000i was released and always kept it because it looked to have a lot of potential. As far as what it's based on I just don't know. My original intent was to use it on a longer time frame to warn of a reversal.

[neal51 10]

Here you can see it on a 60min chart. You can see it would be something to pay attention to when it triggers

[daedalus 10]

^^ my only complaint with it is that its very easy to see those nice "circle shaped" signals that work perfectly in hindsight and to be able to pass on the expansions that expand further or make these megaphone patterns that would chop you up... but in real time i'm thinking they would all look alike so how do you filter out the good from the bad?

 

Anyone got ideas for being able to spot the good expansions and pass on the bad expansions?

[Tasuki 10]

Neal,

This is a fascinating indicator. What the heck are the lines doing? What do they represent? I can't make head or tail out of the Easylanguage---"LongLeg, ShortLeg, MultiLeg, MultiW, tempSyncS" what do any of these mean?

Tasuki

[monti1a 10]

Could someone please post the code as I do not have tradestation.

 

TIA

[garp 10]

Could someone please post the code as I do not have tradestation.

 

TIA

 

See below the .txt file

rb.txt

[neal51 10]

I had no involvement in creating this indicator. Like I said I found it many years ago and saved it when I stopped using Tradestation. Thought I would share it with everyone here to see if others may find in valuable. For now I'm using it realtime to see if it can be traded profitably.

[phhill 10]

It seems as though the red line crossing through wide purple bands is the short signal but the long is when the line crosses up through the narrow bands. It is then okay to stay long while the line is above the bands. It is a little strange. I think it would be wise to confirm the signals with some other indicator to avoid whipsaws.:crap:

 

Now after looking longer I see that the best signals are when the red line crosses the bands at their narrowest (in either direction) and then the bands expand to confirm the direction of the trade. If you compare this with the MACD you can see that the when the bands are at their narrowest it will be at the zero line on the MACD.

Edited February 23, 2009 by phhill
this was a mistake

[clbradley 10]

It looks like with a few other indicators, I mainly use CCI and MACD this way, you can use the divergences, like on 12/15, 12/18, 12/29, 1/6 and 1/20 to catch the big moves and very near if not at tops and bottoms. But of course you would use several other indicators with it, the above mentioned CCI & MACD (both sped up quite a bit), slow stochastics (I use a fast and slow one), RSI, and I draw trendlines on the indicators as well as the price to see when they change and/or show divergence.

[neal51 10]

I'm begining to see what some of you have pointed out. If you look at the chart attached the red arrows indicate sells, which would have left you with a loss IMO. On a shorter time frame I believe it would be too risky to use

[daedalus 10]

Yea... but I still appreciate you posting it up! It gets ideas flowing one way or another!

[BlowFish 10]

I'm begining to see what some of you have pointed out. If you look at the chart attached the red arrows indicate sells, which would have left you with a loss IMO. On a shorter time frame I believe it would be too risky to use

 

I guess it depends how you define 'expand' as in the first step "wait for the purple line to expand".

[Tams 20]

I have added up/down color

 

[LegacyColorValue = true]; 

Input: LongLeg(35), ShortLeg(5), MultiLeg(10), MultiW(1), Show_print(false);
input: upcol(blue), dncol(red);
Var: SyncShort(0), SyncLong(0), SyncMulti(0);
Var: TempSyncS(0), TempSyncL(0), TempSyncM(0), MultiOsc(0);
Var: LongWeight(0), ShortWeight(0), MultiWeight(0), MultiHigh(0), MultiLow(0);
var: DateLock(980116);

ShortWeight = 2/(ShortLeg  + 1);
LongWeight = 2/(LongLeg + 1);

if TempSyncS = 0 then Begin
  SyncShort = Close;
  SyncLong = Close;
  end
Else Begin
  SyncShort = TempSyncS * (1 - ShortWeight) + (ShortWeight * Close);
  SyncLong = TempSyncL * (1 - LongWeight) + (LongWeight * Close);
  end;

TempSyncS = SyncShort;
TempSyncL = SyncLong;


MultiOsc = (100 * ( (SyncShort / SyncLong) - 1) );
plot1(MultiOsc, "MO");


MultiWeight = 2/(MultiLeg  + 1);

if TempSyncM = 0 then
  SyncMulti = MultiOsc
Else 
  SyncMulti = (AbsValue(TempSyncM) * (1 - MultiWeight)) + (MultiWeight * MultiOsc);

TempSyncM = SyncMulti;


MultiHigh = SyncMulti * MultiW;
MultiLow = -1 * MultiHigh;

Plot2(MultiHigh,"MH");
Plot3(MultiLow,"ML");

if SHOW_print then
Print("MO:", MultiOsc, "   MH: ", MultiHigh, "  ML: ", MultiLow);

if MultiOsc > MultiHigh then 
SetPlotColor(1, upcol)
else
if MultiOsc < Multilow then 
SetPlotColor(1, dncol);

plot4(0, "Zero");

[timgallaway 10]

Does anyone happen to know if I can import this indicator's script into X_Trader's X-Study charting tool? Thanks.

[Trendup_ 10]

Interesting indicator, just by observation the rubber band (pink lines, original color) are not expanding in the same scale when going under water line than it does above zero, is it possible to adjust that discrepantly ?

[jficquette 10]

FWIW, readings of less then 5 of either dmi line, + or - tend to show reversal areas.

[Trendup_ 10]

FWIW, readings of less then 5 of either dmi line, + or - tend to show reversal areas.

 

Please, could you post a picture, thanks.

[matfx 10]

It is available for MT4?

[jficquette 10]

Please, could you post a picture, thanks.

 

If you are that interested then you should be able to find pictures on your own.

[ajax358 10]

THX!!!! .....great indicator.....have put it in the level below Price, with the indicator "Chart Value" (here on boards)......is great combo & the 'RubberBand/142' verifes the Value Chart so well, almost no losers now & can see the false moves reall well. Thx again for this indicator....

ajax358

[gregcgc01 10]

Liking the "value chart" too.

[cchuat 10]

Can this indicator be used in MetaStock? If yes, how do I add?

[pat15 10]

Seems like a good indicator ..however the problem is one does noy use TS then you are out of luck ...as coding is not that easy ..I use Ensign charts ..it uses ESPL language unless the code is written in that language it will not work ..

Does anyone else use Ensign charts here?

 

Thks for sharing

 

Pat