Bollinger Bubble Breakout

أول أمس

The Bollinger Bubble Breakout (BBB) indicator is a tool for analyzing price movements using Bollinger Bands combined with additional moving averages. It is based on the idea, known as the "Bollinger Bubble Theory," that when a candle closes outside the Bollinger Bands, the price often returns quickly to the 7-period Exponential Moving Average (EMA).

Bollinger Bands are made up of a middle line, which is typically a moving average, and two outer bands that represent standard deviations from this line. These bands help identify when the price is overbought or oversold. The BBB indicator builds on this by adding customizable options for the middle line, allowing the user to choose between different types of moving averages, such as SMA or EMA.

The indicator provides visual signals when the price moves outside the bands. A buy signal appears when the price closes below the lower band, and a sell signal appears when it closes above the upper band. These signals are marked directly on the chart for clarity.

The BBB indicator also includes options to display a 7-period EMA and a 200-period SMA. The EMA shows the short-term reversion level, while the SMA helps identify the overall trend. This combination of tools makes the BBB indicator useful for spotting price reversals and understanding the market's trend context.

This indicator is easy to use and helps traders identify opportunities when price action becomes extreme. It is particularly helpful for those who look for mean reversion setups or want to combine short-term signals with long-term trend analysis.