Prime Bands [ChartPrime]

The Prime Standard Deviation Bands [ChartPrime] indicator uses custom-calculated bands based on highest and lowest price values over specific period to analyze price volatility and trend direction. Traders can set the bands to 1, 2, or 3 standard deviations from a central base, providing a dynamic view of price behavior in relation to volatility. The indicator also includes color-coded trend signals, standard deviation labels, and mean reversion signals, offering insights into trend strength and potential reversal points.

The Prime Bands [ChartPrime] indicator provides a comprehensive view of price volatility and trend direction. Its customizable bands, trend coloring, and mean reversion signals allow traders to effectively gauge price behavior, identify extreme conditions, and make informed trading decisions based on statistical boundaries.

Features:

• Standard Deviation Bands: The indicator plots upper and lower bands based on standard deviation settings (1, 2, or 3 SDs) from a central base, allowing traders to visualize volatility and price extremes. These bands can be used to identify overbought and oversold conditions, as well as potential trend reversals.
• Dynamic Trend Indicator: The midline of the bands changes color based on trend direction. If the midline is rising, it turns green, indicating an uptrend. When the midline is falling, it turns orange, suggesting a downtrend. This color coding provides a quick visual reference to the current trend.
• Standard Deviation Labels: At the end of the bands, the indicator displays labels with price levels for each standard deviation level (+3, 0, -3, etc.), helping traders quickly reference where price is relative to its statistical boundaries.
• Mean Reversion Signals: When price moves beyond the upper or lower bands and then reverts back inside, the indicator plots mean reversion signals with diamond icons. These signals indicate potential reversal points where the price may return to the mean after extreme moves.
• Standard Deviation Scale on Chart: A visual scale on the right side of the chart shows the current price position in relation to the bands, expressed in standard deviations. This scale provides an at-a-glance view of how far price has deviated from the mean, helping traders assess risk and volatility.

Example:



User Inputs:

• Length: Sets the number of bars used in the calculation of the bands.
• Standard Deviation Level: Allows selection of 1, 2, or 3 standard deviations for upper and lower bands.
• Colors: Customize colors for the uptrend and downtrend midline indicators.

Availability:

• FREE
• Open-Source

Linkback: https://www.forex.zone/tradingview-pine-script-indicators/41/prime-bands-chartprime/4570/