Profit Indicator is a script inspired by Jim Berg, from a 2005 article titled "The Truth About Volatility". This is a set of bands, where the upper band is based on a moving average of highs over a given period, added to the of the period. The lower band is based on a moving average of lows over the same given period, from which the is subtracted. The formula is shown below:
VPI High Band = MA(HI, type, x) + y * ATR(z)
VPI Low Band = MA(LO, type, x) - y * ATR(z)
where... type = MA Type (default to Exponential) x = MA Period (default to 13) y = True Range Multiplier (default to 2) z = True Range Period (default to 20)
should be familiar by now, but they are calculated based on a moving average of a source ( / 3), added to a particular standard deviation of the source.
- Allows you to choose whether you want to plot the Profit Indicator or . By default, each will show three bands.
- Has pre-made color schemes to choose from to simplify your life.
- Has smoothing for the Profit Indicator
- Allows you to choose the source for
- Allows you to select what multiplier of the the Profit Indicator plots, as well as what standard deviations the show.
If you have any additional questions, concerns, or suggestions - feel free to reach out.
All the best & happy trading.