[Top] 🦙 LHAMA Bands

🦙 LHAMA Bands — Adaptive Bollinger Bands with RSI Heatmap Fill
This indicator combines adaptive Bollinger Bands and a dynamic RSI-based heatmap fill to help traders assess price volatility and momentum extremes at a glance. Unlike standard Bollinger Bands that use a fixed SMA basis, this version includes a Low-High Adaptive Moving Average (LHAMA) option that adjusts responsiveness based on recent price action, reducing lag during trend shifts.

How It Works
1. Basis Calculation (SMA or LHAMA)
SMA Basis:
Uses a traditional simple moving average of the selected source over the Bollinger Band length.
LHAMA Basis:
Computes an adaptive moving average that reacts faster when the highest high or lowest low changes over the LHAMA length. The adaptive coefficient increases during volatility, making the bands tighten or expand more responsively.

2. Bollinger Bands
Upper and lower bands are calculated by adding/subtracting a multiple of standard deviation from the basis. The multiplier (e.g., 2) controls the sensitivity to volatility.

3. RSI Heatmap Fill
The fill between the bands is dynamically colored based on the RSI value.

Colors range from:
Deep purple for very oversold (RSI ≤10)
Gradient purples and oranges through neutral
Bright yellow for very overbought (RSI ≥90)

This makes it easy to see whether price is consolidating at oversold/overbought extremes within the bands.

4. Optional RSI Table
Displays a floating table showing the current RSI value. Text color changes depending on RSI level for instant reference.

Inputs & Customization
You can adjust:
Bollinger Band Settings
Line Type

• SMA or LHAMA
  
• LHAMA length (if selected)
  

RSI Settings
Heatmap Colors
RSI Table:

• Toggle table visibility and select its screen position.
  

How to Use
Volatility & Trend Context:
Use the adaptive bands to gauge when price is expanding or contracting.
The LHAMA basis can help identify faster-moving trends than an SMA.

Momentum Confirmation:
Observe the RSI heatmap fill color to confirm whether price is in overbought or oversold territory.

Dynamic Entry/Exit Zones:
Look for confluence between price touching bands and RSI extremes.
For example, if price is near the lower band with a deep purple fill (RSI ≤10), it could signal exhaustion.

Visual Clarity:
The optional table allows quick reference to the RSI value without opening separate indicators.

What Makes It Unique
This indicator enhances classic Bollinger Bands by:

• Providing adaptive smoothing (LHAMA) for improved reactivity.
  
• Embedding a color-coded RSI heatmap fill that instantly shows momentum context.
  
• Offering extensive customization of colors, styles, and display options to fit any charting workflow.