TradingView presented an indicator created by John Bollinger

TradingView, the bitcoin (BTC) and cryptocurrency charting platform, introduced a new indicator designed by financial analyst John Bollinger, creator of the Bollinger Bands.

This exclusive TradingView indicator is called BBTrend and is reportedly designed to provide traders with detailed information on market trends and advanced analytics.

Now, with BBTrend the trader will be able to have a clearer picture of market trends since it uses two separate sets of Bollinger Bands, one short and one long, and displays the results in a histogram format, which is used to represent the frequency distribution of a quantitative variable.

How is the BBTrend indicator interpreted?

The indicator is reportedly interpreted as follows: values ​​above zero indicate a bullish trend, while values ​​below zero indicate bearish conditions. The distance from zero reflects the strength of the trend.

“Under John’s direct supervision, this process ensured that both the new and updated tools met his precise standards,” stated the TradingView team.

This is how BBTrend is used

For the trader to start enjoying the new indicator, they must follow these steps:

• Customize Settings: Adjust the lengths of the long short bands in the BBTrend settings to match your trading preferences and the specific dynamics of the market you are analyzing.
• Read the histogram: It is key to monitor the histogram to determine the direction of the market trend. Positive values ​​indicate an uptrend, while negative values ​​suggest a downtrend.
• Evaluate the strength of the trend: observe the distance of the histogram bars from the zero line. The further the bars extend from zero, the stronger the trend.
• Identify possible trend changes: pay attention to the peaks and valleys of the histogram. Peaks can indicate possible trend highs, while lows can indicate possible trend lows.
• Observe color intensity: Changes in the color intensity of the histogram bars, as they can indicate changes in momentum. The strongest ones suggest increasing strength, while the lighter ones indicate a weakening trend.

John Bollinger does it again

Bollinger is a well-known figure in the world of technical analysis and finance. In the 1980s, revolutionized the way traders interpret market volatility.

Bollinger Bands are one of the essential indicators in technical analysis, mainly used to measure market volatility. They consist of a middle line, usually a simple moving average, flanked by two outer bands that represent standard deviations from the mean.

This setting helps Traders identify potential price targets and detect overbought or oversold conditions in the markets.

Now, with the introduction of BBTrend to TradingView, Bollinger marks a new chapter in its success, consolidating its position as an innovator in the world of technical analysis in finance.