Volatility Bands Indicator for TradeStation

Volatility Bands Indicator for TradeStation

100% Money Back Guarantee

Available for TradeStation 8.4 and above

The TradeStation volatility bands indicator is designed to calculate the volatility bands for a specific market based upon historical volatility or implied volatility - implied volatility bands are only available with TradeStation 8.x. Volatility bands provide a statistical probability of where market prices are likely to be contained over a specific period of time based upon standard deviation. Below is a chart showing the expected probability that prices will remain within the range of the corresponding volatility bands.

Volatility bands are popular with traders looking to identify high probability market reversal levels, especially for intraday trading. These TradeStation volatility band indicators are provided in both end-of-day and intraday formats to help traders identify these key reversal areas.

We are confident our indicators will benefit your trading which is why we offer a 100% money back guarantee so you can try out our indicators for yourself and if they are not right for you just let us know within 30 days for a full refund.

Below are some charts from TradeStation showing the volatility band indicators in action.

This first chart above was taken using daily bars of WMT. There are 3 volatility bands applied at 1.0, 2.0 and 3.0 standard deviations from the close.

The TradeStation chart above shows the same 3 volatility bands applied to a 5 minute intraday chart of WMT. When applied to an intraday chart in TradeStation the intraday volatility bands indicator calculates the each bands value on the first bar and retains that value during the trading day.

Our TradeStation volatility bands are not limited to being calculated from the close. The above daily chart of EBAY is displaying 3 volatility bands (1.0, 2.0 and 3.0) which have been calculated from the 10 day moving average. These end of day volatility band values can also be used intraday, see the chart below.

The TradeStation intraday EBAY chart above shows the same volatility band values that were calculated from the 10 day moving average seen in the previous EBAY chart. You can clearly see the same volatility band values for 05/28/09 feature in both the daily and intraday charts.

The 5 minute intraday chart above has a single 1.0 deviation volatility band applied. As volatility bands are usually calculated from the previous days close this large gap results in GOOG trading too far from the volatility bands for them to offer any value for this day. Our TradeStation volatility bands include an optional setting to plot volatility bands from today's open instead of yesterday's close, see below.

The above TradeStation chart of GOOG has the same volatility bands applied as before but this time the option to plot the bands from the open, instead of the close, has been selected. As a result the bands gap up with the market and form around the market for that day providing key resistance levels.

Key Features

The volatility bands TradeStation indicator has a number of different inputs allowing you to easily adjust the indicator to suit your personal requirements. Here are some of the advantages offered by this indicator:

• User definable inputs.
• End-of-day and intraday versions of each indicator.
• Includes real-time alert function.
• Additional radarscreen information.
• Indicators also provided as functions.

In addition to applying the volatility bands indicator to a TradeStation chart or radarscreen the indicator can also be applied to the new TradeStation scanner so you can scan all markets simultaneously.

User definable inputs.

The volatility band indicators include multiple inputs allowing you to personalize the indicators. As mentioned earlier among the settings included are inputs to change the price used to calculate each set of volatility bands, like from the close or a moving average, or from the open. You can also select the standard deviation of each band and the length of volatility used to calculate them.

End-of-day and intraday versions of each indicator.

Each volatility band indicator is provided in both and end-of-day version and an intraday version. The intraday version maintains the same band value during the whole day and can be synced with daily bars to display volatility band values from a daily moving average within an intraday chart. The intraday version of the volatility bands indicator also includes the option to override when each new set of volatility bands are calculated by setting the time of the bar you wish to re-calculate the bands. An example of this can be found below in the additional chart examples.

Includes real-time alert function.

The volatility bands indicator includes the option to use TradeStation's real-time alert function giving you the ability to be alerted when prices exceed the upper or lower bands.

Additional radarscreen information.

When applied to a TradeStation radarscreen the volatility bands indicator can be used to scan and sort multiple markets in real-time. The components of the S&P 100 have been inserted into a radarscreen below which has the volatility bands indicator applied.

The volatility bands indicator applied to a TradeStation radarscreen.

Within a radarscreen the volatility bands indicator displays the upper and lower band values which will change color when price exceeds the bands value. As well as displaying the upper and lower volatility band values the indicator provides 2 additional columns of information within a TradeStation radarscreen.

Ratio – shows where the current price is in relation to the volatility bands. A value between 0-1 means that the current price is within both bands with 0 being the lower band and 1 being the upper band. A ratio value below 0 means price is currently below the lower band and a ratio value above 1 means price is currently above the upper band.

Vola Range – provides the range of the volatility bands from upper to lower band.

Indicators also provided as functions.

In addition to providing the volatility band indicators in standard indicator form, the indicators are also supplied as functions enabling you to incorporate the volatility band functions into your own indicators and trading strategies.

Continued Support and Updates for a Minimum of 12 Months

All our products come with full support so if you have any problems or require any additional information you can contact us for assistance. We also offer updates for a minimum of 12 months so if any new features are added to these indicators during this time then they can be sent to you for free.

If you have any questions about this, or any other product we offer, please contact us at infotechnicaltradingindicators.com

More Chart Examples

A 5 minute intraday chart of the S&P 500 e-mini with volatility bands applied.

The intraday USDJPY chart above has the volatility bands inserted which have had the intraday time reset option applied and set to 10.00. Using this time option overrides the standard setting for the volatility bands to be re-calculated each new day and instead the bands are re-calculated on the specified bar time.

Dynamic Reversal Indicator for TradeStation The dynamic reversal indicator is exclusive to TradeStation 8.x only. This indicator is used to measure price swings and to alert the user when prices become oversold or overbought compared to recent market action. It monitors oversold/overbought conditions in a dynamic fashion by comparing current price movement with recent swings in price, rather than measuring price swings based upon a static scale like a specific change in price between two points or on a range bound scale like RSI. The dynamic reversal indicator can be applied in the same way as a regular reversal indicator looking for overbought/oversold conditions in the market. The dynamic reversal indicator can also be used to find high probability trading opportunities in short term market reversals, extremely useful for swing traders, by applying the indicator to find markets exhibiting new and extreme levels of price action and volatility. $99.00

Reflection Indicator Set For TradeStation The reflection indicator is a mirror indicator that reflects current price action into the future. The idea of the indicator is to help identify the trend of the market and the future trading range of a market over time. The concept was popularized by Welles Wilder in his book on Adam Theory. The TradeStation reflection indicator set is a collection of indicators designed to help TradeStation users take advantage of price reflections in any time frame. $99.00

Disclaimer

The term “company” or “us” or “we” refers to TechnicalTradingIndicators.com and owners or employees or affiliates of TechnicalTradingIndicators.com. The term “you” refers to the user or customer of TechnicalTradingIndicators.com. The term "information" refers to indicators, strategies, manuals, data, communications and any other associated products and material of TechnicalTradingIndicators.com.

Licence:
You are purchasing a single user licence which may not be transferred or resold. The product and/or information shall not be copied, distributed, disclosed, disseminated or communicated in any way or form to a third party.

Disclaimer:
All information provided is for educational purposes only. The company is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The company may hold positions in the stocks, currencies or industries discussed here.

You understand and acknowledge that there is a high degree of risk involved in trading securities and/or currencies. The Company assume no responsibility or liability for your trading and investment results and you agree not to hold the company liable for any monetary loss and/or damages of any kind. There is a high degree of risk in trading and you should always consult a qualified advisor about the suitability of any investment.

It should not be assumed that the information presented will be profitable or that it will not result in losses. All information including performance reports and charts are based upon simulated trading and do not include slippage or commission unless otherwise stated. Care has been taken in the preparation of the information. However, we do not make any representations or warranties as to the accuracy of the information provided. Information and products provided by the Company rely on data from third party sources which may or may not be accurate and no guarantee is given to the accuracy or completeness of the data used or information provided.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN

Please note that there are additional limitations when attempting to simulate the performance of a trading system which includes short trades due to various short trading regulations and hard/impossible to borrow stocks which cannot be incorporated into the simulated performance. There is a high degree of risk in trading, and short trading can carry additional risk, so you should always consult a qualified advisor about the suitability of any investment.

Tradestation Disclaimer:
“Neither TradeStation Technologies nor any of its affiliates has reviewed, certified, endorsed, approved, disapproved or recommended, and neither does or will review, certify, endorse, approve, disapprove or recommend, any trading software tool that is designed to be compatible with the TradeStation Open Platform.”

© TechnicalTradingIndicators.com

« Back