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

    • NFLX Netflix stock watch, local support and resistance areas at 838.12 and 880.5 at https://stockconsultant.com/?NFLX
    • NFLX Netflix stock watch, local support and resistance areas at 838.12 and 880.5 at https://stockconsultant.com/?NFLX
    • Hello citizens of the U.S. The hundred year trade war has leaked over into a trading war. Your equity holdings are under attack by huge sovereign funds shorting relentlessly... running basically the opposite of  PPT operations.  As an American you are blessed to be totally responsible for your own assets - the govt won’t and can’t take care of you, your lame ass whuss ‘retail’ fund managers go catatonic  and can't / won’t help you, etc etc.... If you’re going to hold your positions, it’s on you to hedge your holdings.   Don’t blame Trump, don’t blame the system, don’t even blame the ‘enemies’ - ie don’t blame period.  Just occupy the freedom and responsibility you have and act.  The only mistake ‘Trump’ made so far was not to warn you more explicitly and remind you of your options to hedge weeks ago.   FWIW when Trump got elected... I also failed to explicitly remind you... just sayin’
    • Date: 7th April 2025.   Asian Markets Plunge as US-China Trade War Escalates; Wall Street Futures Signal Further Turmoil.   Global financial markets extended last week’s massive sell-off as tensions between the US and its major trading partners deepened, rattling investors and prompting sharp declines across equities, commodities, and currencies. The fallout from President Trump’s sweeping new tariff measures continued to spread, raising fears of a full-blown trade war and economic recession.   Asian stock markets plunged on Monday, extending a global market rout fueled by rising tensions between the US and China. The latest wave of aggressive tariffs and retaliatory measures has unnerved investors worldwide, triggering sharp sell-offs across the Asia-Pacific region.   Asian equities led the global rout on Monday, with dramatic losses seen across the region. Japan’s Nikkei 225 index tumbled more than 8% shortly after the open, while the broader Topix fell over 6.5%, recovering only slightly from steeper losses. In mainland China, the Shanghai Composite sank 6.7%, and the blue-chip CSI300 dropped 7.5% as markets reopened following a public holiday. Hong Kong’s Hang Seng Index opened more than 9% lower, reflecting deep concerns about escalating trade tensions.           South Korea’s Kospi dropped 4.8%, triggering a circuit breaker designed to curb panic selling. Taiwan’s Taiex index collapsed by nearly 10%, with major tech exporters like TSMC and Foxconn hitting circuit breaker limits after each fell close to 10%. Meanwhile, Australia’s ASX 200 shed as much as 6.3%, and New Zealand’s NZX 50 lost over 3.5%.   Despite the escalation, Beijing has adopted a measured tone. Chinese officials urged investors not to panic and assured markets that the country has the tools to mitigate economic shocks. At the same time, they left the door open for renewed trade talks, though no specific timeline has been set.   US Stock Futures Plunge Ahead of Monday Open   US stock futures pointed to another brutal day on Wall Street. Futures tied to the S&P 500 dropped over 3%, Nasdaq futures sank 4%, and Dow Jones futures lost 2.5%—equivalent to nearly 1,000 points. The Nasdaq Composite officially entered a bear market on Friday, down more than 20% from its recent highs, while the S&P 500 is nearing bear territory. The Dow closed last week in correction. Oil prices followed suit, with WTI crude dropping over 4% to $59.49 per barrel—its lowest since April 2021.   Wall Street closed last week in disarray, erasing more than $5 trillion in value amid fears of an all-out trade war. The Nasdaq Composite officially entered a bear market on Friday, sinking more than 20% from its recent peak. The S&P 500 is approaching bear territory, and the Dow Jones Industrial Average has slipped firmly into correction territory.   German Banks Hit Hard Amid Escalating Trade Tensions   German banking stocks were among the worst hit in Europe. Shares of Commerzbank and Deutsche Bank plunged between 9.5% and 10.3% during early Frankfurt trading, compounding Friday’s steep losses. Fears over a global trade war and looming recession are severely impacting the financial sector, particularly export-driven economies like Germany.   Eurozone Growth at Risk   Eurozone officials are bracing for economic fallout, with Greek central bank governor Yannis Stournaras warning that Trump’s tariff policy could reduce eurozone GDP by up to 1%. The EU is preparing retaliatory tariffs on $28 billion worth of American goods—ranging from steel and aluminium to consumer products like dental floss and luxury jewellery.   Starting Wednesday, the US is expected to impose 25% tariffs on key EU exports, with Brussels ready to respond with its own 20% levies on nearly all remaining American imports.   UK Faces £22 Billion Economic Blow   In the UK, fresh research from KPMG revealed that the British economy could shrink by £21.6 billion by 2027 due to US-imposed tariffs. The analysis points to a 0.8% dip in economic output over the next two years, undermining Chancellor Rachel Reeves’ growth agenda. The report also warned of additional fiscal pressure that may lead to future tax increases and public spending cuts.   Wall Street Braces for Recession   Goldman Sachs revised its US recession probability to 45% within the next year, citing tighter financial conditions and rising policy uncertainty. This marks a sharp jump from the 35% risk estimated just last month—and more than double January’s 20% projection. J.P. Morgan issued a bleaker outlook, now forecasting a 60% chance of recession both in the US and globally.   Global Leaders Respond as Trade Tensions Deepen   The dramatic market sell-off was triggered by China’s sweeping retaliation to a new round of US tariffs, which included a 34% levy on all American imports. Beijing’s state-run People’s Daily released a defiant statement, asserting that China has the tools and resilience to withstand economic pressure from Washington. ‘We’ve built up experience after years of trade conflict and are prepared with a full arsenal of countermeasures,’ it stated.   Around the world, policymakers are responding to the growing threat of a trade-led economic slowdown. Japanese Prime Minister Shigeru Ishiba announced plans to appeal directly to Washington and push for tariff relief, following the US administration’s decision to impose a blanket 24% tariff on Japanese imports. He aims to visit the US soon to present Japan’s case as a fair trade partner.   In Taiwan, President Lai Ching-te said his administration would work closely with Washington to remove trade barriers and increase purchases of American goods in an effort to reduce the bilateral trade deficit. The island's defence ministry has also submitted a new list of US military procurements to highlight its strategic partnership.   Economists and strategists are warning of deeper economic consequences. Ronald Temple, chief market strategist at Lazard, said the scale and speed of these tariffs could result in far more severe damage than previously anticipated. ‘This isn’t just a bilateral conflict anymore — more countries are likely to respond in the coming weeks,’ he noted.   Analysts at Barclays cautioned that smaller Asian economies, such as Singapore and South Korea, may face challenges in negotiating with Washington and are already adjusting their economic growth forecasts downward in response to the unfolding trade crisis.           Oil Prices Sink on Demand Concerns   Crude oil continued its sharp slide on Monday, driven by recession fears and weakened global demand. Brent fell 3.9% to $63.04 a barrel, while WTI plunged over 4% to $59.49—both benchmarks marking weekly losses exceeding 10%. Analysts say inflationary pressures and slowing economic activity may drag demand down, even though energy imports were excluded from the latest round of tariffs.   Vandana Hari of Vanda Insights noted, ‘The market is struggling to find a bottom. Until there’s a clear signal from Trump that calms recession fears, crude prices will remain under pressure.’   OPEC+ Adds Further Pressure with Output Hike   Bearish sentiment intensified after OPEC+ announced it would boost production by 411,000 barrels per day in May, far surpassing the expected 135,000 bpd. The alliance called on overproducing nations to submit compensation plans by April 15. Analysts fear this surprise move could undo years of supply discipline and weigh further on already fragile oil markets.   Global political risks also flared over the weekend. Iran rejected US proposals for direct nuclear negotiations and warned of potential military action. Meanwhile, Russia claimed fresh territorial gains in Ukraine’s Sumy region and ramped up attacks on surrounding areas—further darkening the outlook for markets.   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.   Andria Pichidi 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.
    • AMZN Amazon stock watch, good buying (+313%) toi hold onto the 173.32 support area at https://stockconsultant.com/?AMZN
×
×
  • Create New...

Important Information

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