Bollinger Bands 2-Candle Rejection Indicator

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Bollinger Bands 2-Candle Rejection Indicator
TraderOracle Method(creator) – Converted by CANDO13579

Overview:
The Bollinger Bands 2-Candle Rejection indicator is designed to highlight potential trend reversals by identifying two-bar rejection patterns at the Bollinger Bands extremes. It combines standard Bollinger Bands with a candlestick pattern methodology to generate early signals for bullish and bearish reversals.

Logic & Functionality:

Uses a standard Bollinger Bands calculation with customizable length (bbLength) and standard deviation (bbStdDev).
Detects bearish rejection when a prior bullish candle is followed by a candle that closes below the Bollinger Bands upper boundary, indicating potential downward momentum.
Detects bullish rejection when a prior bearish candle is followed by a candle that closes above the Bollinger Bands lower boundary, signaling possible upward momentum.
Visual cues include arrows on the chart for buy/sell signals, colored clouds highlighting the reversal area, and optional text labels for quick reference.
Supports real-time alerts for both bullish and bearish rejection patterns, enabling traders to act promptly.

Visual Features:

Upper, middle, and lower Bollinger Bands plotted for reference.
Arrows indicating rejection signals: green for bullish and red for bearish.
Background cloud coloring for immediate visual confirmation of signals.
Optional chart labels for signal clarity.

Inputs:

bbLength – Period for Bollinger Bands calculation (default: 20).
bbStdDev – Standard deviation multiplier for band width (default: 2.0).
showLabels – Toggle display of textual labels on the chart (default: yes).

Credits:
Indicator conversion by: CANDO13579

• Bollinger Bands methodology: John Bollinger
• Candle rejection logic: TraderOracle Method(creator)

Usage:
This indicator is ideal for intraday traders and swing traders seeking early reversal signals at key volatility levels. It works best when combined with trend confirmation tools and volume analysis for improved accuracy.

 

[cando13579]

Here;
simple but effective;