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cdcaveman

BBSqueeze, PBFSqueeze, CounterTrend

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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?

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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?

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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

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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

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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..

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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.

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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 ;)

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...... 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:

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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

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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

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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...

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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

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