Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

cdcaveman

BBSqueeze, PBFSqueeze, CounterTrend

Recommended Posts

i'm a little confused about what the difference is.. i would like to adjust the settings a little as well.. they seem to produce alot of noise.. anyone with experience with these can help?

 

can you explain a bit more on your observation?

 

and what would you like to improve?

 

can you post a few screen shots? with arrows and notes describing your concern?

Share this post


Link to post
Share on other sites

Can you post the code you're using? That would simplify getting everyone on the same page.

 

i'm a little confused about what the difference is.. i would like to adjust the settings a little as well.. they seem to produce alot of noise.. anyone with experience with these can help?

Share this post


Link to post
Share on other sites
Can you post the code you're using? That would simplify getting everyone on the same page.

 

i'm working on it i reconfigured my computer to make it faster with solid state drives so i'm loading all my stuff back on it.. i tried using print screen but i didn't have photoshop on thecomputer or anything to edit it.

it just seems like i'm getting a ton of noise on the idicator.. that or i'm reading it wrong.. i'll show you a screen shot with captions to explain my questions thanks Carey

Share this post


Link to post
Share on other sites

now i've attached a screenshot.. it seems like there is alot of lag in this indicator.. my other question is what isthe difference between the pbfsqueeze bbsqueeze and countertrend and how is it read? and how would one suggest to adjust the parameters to reduce noise..

5aa710dec35dc_EURUSD(5Min)3_19_2012.thumb.jpg.4ca685918a033a3c641d7da42e181ce3.jpg

Share this post


Link to post
Share on other sites

Regarding the code I asked for ...I don't use NT so keep that in mind before you go to any trouble to post it. I don't know the answer to the difference between these versions.

 

now i've attached a screenshot.. it seems like there is alot of lag in this indicator.. my other question is what isthe difference between the pbfsqueeze bbsqueeze and countertrend and how is it read? and how would one suggest to adjust the parameters to reduce noise..

Share this post


Link to post
Share on other sites
now i've attached a screenshot.. it seems like there is alot of lag in this indicator.. my other question is what isthe difference between the pbfsqueeze bbsqueeze and countertrend and how is it read? and how would one suggest to adjust the parameters to reduce noise..

 

Although I wouldn't go as far as to say that 'squeezes' are a complete waste of time, there are far more useful things that you could be looking at. All markets move through volatility cycles, but only certain markets demonstrate directional volatility.

 

If you do want to trade with this type of indicator then have a read through "Bollinger on Bollinger Bands" first. It's widely available as a free pdf online.

 

Hope that helps.

 

Bluehorseshoe.

Share this post


Link to post
Share on other sites
now i've attached a screenshot.. it seems like there is alot of lag in this indicator.. my other question is what isthe difference between the pbfsqueeze bbsqueeze and countertrend and how is it read? and how would one suggest to adjust the parameters to reduce noise..

 

generally speaking, indicators work different on each pair, time frame and trend conditions. so you may want to adjust settings accordingly. anyway using single indicator is dangerous ;)

Share this post


Link to post
Share on other sites
...... it seems like there is alot of lag in this indicator.. and how would one suggest to adjust the parameters to reduce noise..

 

 

What is "PBFSqueeze," I'm not familiar with that. :(

 

Most often the BBand settings are a 20 period simple MA as suggested by Bollinger, and bands set to 2 standard deviations. So the "lag" will always be embedded in the average. I like this indicator (I just use the bands no fancy indicator), I also suggest getting/reading the book. I've found if BBands are used with a volume study to aid in confirming market direction (as suggested in "the book") my entries are significantly enhanced, you might get by with tick volume if your trading spot. I would caution you in any attempt to "reduce noise," I believe with some screen time with standard settings (and minimal "tweeking") you'll learn many trade-able signals. Most of my trade signals from the BBands are mean reversion, so the opportunity to overtrade is something I have to keep in mind on a range bound day. As a final suggestion, you might consider putting the bands on the chart and study/see/visualize how the "indicator" indicates :) and with a little more insight (screen time) you might not feel so compelled to "reduce the noise."

 

It's so simple, a caveman can do it!! :rofl:

Share this post


Link to post
Share on other sites
What should I be looking at instead? Why is this so popular if it's a waste of time?

 

Hi Onesmith,

 

I didn't say that it is a waste of time - please see the first line of my comment. I am working on the (perhaps unfair) assumption that the thread starter is fairly new to trading, and may not have the opportunity or skills to test something as rigourously as you or I would.

 

As I'm sure you're aware, squeezes are a form of volatility breakout. The volatility measure in the instance of Bollinger Bands is derived from Standard Deviation, the application of which to market price ('exotic') data is rather dubious. The typical (ie Carter-esque) Squeeze setup assumes that prices do not follow a normal gaussian distribution and that kurtosis ('fat tails') will occur, from which the trader can derive an advantage.

 

Is this true? Sometimes, in some markets. At a guess, the Squeeze indicator might be useful in markets such as the Euro or Crude Oil, both of which are prone to breakout trending moves. However a market such as the ES, which typically does follow a normal distribution pattern of mean reversion, does not tend to produce reliable breakout moves. In fact, if you forced me to trade the ES with a squeeze indicator, I would fade any breakout following a squeeze.

 

As for why the indicator is so popular, I would suggest this is because it 'makes sense' rationally when authors explain it, because it signals sufficient adequate moves on most charts to look appealing to newer trader who doesn't know how to test things well, and because it has been heavily promoted by numerous educators.

 

I am not saying that the indicator is a waste of time, but I don't think it's the easiest thing to use well.

 

Bluehorseshoe

Share this post


Link to post
Share on other sites

This is the key to everything or at least the most important key I've found.

 

with some screen time with standard settings (and minimal "tweeking") you'll learn many trade-able signals

Share this post


Link to post
Share on other sites
I think this is good advice.

 

I totally agree ;)

 

of course value of indicator is important but if you look at it only, you may miss extra information you could get. convergence-divergence, formations etc...

Share this post


Link to post
Share on other sites
I shouldn't have misquoted you. I am sorry. Thank you for elaborating. I get lots of good ideas from your posts.

 

No worries - glad someone finds my posts beneficial - I'm sure I'll be coming to you for help again next time I get stuck with coding!

 

Bluehorseshoe

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Similar Content

    • By Cookie Monster
      Does anyone know of any indicators, indices, or market internals that function well during the overnight session for the US index futures, bond futures, oil, gold, type of 24 hr trading during non US hours?
    • By Donald
      So I've been messing with the indicators and learning about them. Made me curious what does the majority use here and why?
      Currently I'm using Bollinger Bands, Awesome Oscillator, Moving Average, Belkhayate Timing and Parabolic SAR.
      From all these Belkhayate is my favourite so far, it almost only made me win trades. While Parabolic is almost like MA, I still can read it more clearly on how the market moves.
  • Topics

  • Posts

    • CVNA Carvana stock, nice top of range breakout at https://stockconsultant.com/?CVNA
    • GDRX GoodRx stock, good day, watch for a bottom range breakout at https://stockconsultant.com/?GDRX
    • Date: 14th February 2025.   Can The NASDAQ Maintain Momentum at Key Resistance Level?     The price of the NASDAQ throughout the week rose more than 3.00% to bring the price back up to the instrument’s resistance level. However, while taking into consideration higher inflation, tariffs and the resistance level, could the index maintain momentum?   US Inflation Rises For a 4th Consecutive Month The US Consumer Price Index, or inflation, rose for a 4th consecutive month taking the rate even further away from the Federal Reserve’s target. Analysts were expecting the US inflation rate to remain unchanged at 2.9%. However, consumer inflation rose to 3.00%, the highest since July 2024, while Producer inflation rose to 3.5%. Higher inflation traditionally triggers lower sentiment towards the stock market as investors' risk appetite falls and they prefer the US Dollar. However, on this occasion bullish volatility rose. For this reason, some traders may be considering if the price is overbought in the short term.   Addressing these statistics, US Federal Reserve Chair Jerome Powell acknowledged that the Fed has yet to achieve its goal of curbing inflation, adding further hawkish signals regarding the monetary policy. Other members of the FOMC also share this view. Today, Raphael Bostic, President of the Federal Reserve Bank of Atlanta, stated that the Fed is unlikely to implement interest rate cuts in the near future. This is due to ongoing economic uncertainty following the introduction of trade tariffs on imported goods and other policies from the Republican-led White House.   Most of the Federal Open Market Committee emphasizes additional time is needed to fully assess the situation. According to the Chicago Exchange FedWatch Tool, interest rate cuts may not start until September 2025.   What’s Driving The NASDAQ Higher? Earnings data this week has continued to support the NASDAQ. Early this morning Airbnb made public their quarterly earnings report whereby they beat both earnings per share and revenue expectations. The Earnings Per Share read 25% higher than expectations and Revenue was more than 2% higher. As a result, the stock rose more than 14%. Another company this week that made public positive earnings data is Cisco which rose by more than 2% on Thursday. Another positive factor continues to be the positive employment data. Even though the positive employment data can push back interest rate cuts, the stability in the short term continues to serve the interests of higher consumer demand. The US Unemployment Rate fell to 4.00% the lowest in 8 months. Lastly, investors are also increasing their exposure to the index due to sellers not being able to maintain control or momentum. Some economists also increase their confidence in economic growth if Trump can obtain a positive outcome from the Ukraine-Russia negotiations.   However, during Friday’s pre-US session trading, 80% of the most influential stocks are witnessing a decline. The NASDAQ itself is trading more or less unchanged. Therefore, the question again arises as to whether the NASDAQ can maintain momentum above this area.   NASDAQ - News and Technical analysis In terms of technical analysis, the NASDAQ is largely witnessing mainly bullish indications on the 2-hour chart. However, the main concern for traders is the resistance level at $21,960. On the 5-minute timeframe, the price is mainly experiencing bearish signals as the price moves below the 200-period simple moving average.   The VIX, which is largely used as a risk indicator, is currently trading 0.75% higher which indicates a lower risk appetite. In addition to this, bond yields trade 6 points higher. If both the VIX and Bond yields rise further, further pressure may be witnessed for index traders.   Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • LUNR Intuitive Machines stock watch, attempting to move higher off 18.64 support, target 26 area at https://stockconsultant.com/?LUNR
    • CNXC Concentrix stock watch, pullback to 47.16 triple support area with bullish indicators at https://stockconsultant.com/?CNXC
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.