Volume Weighted Filtered Bands

These bands are built by firstly using a volatility and short term range detection algorithm and plugging this into three different lengths of smoothing filters. The output is then combined and filtered one last time before being colored and plotted as multiple bands.

They can be customized to suit any trading style, but were built with scalp traders particularly in mind. It’s rare for prices to deviate from these bands for long.

A typical use case for these bands would be to trade with the trend while price is trading cleanly inside and in the same direction as the bands. Profit taking should typically be considered when price exceeds the bands, although this will depend on the settings chosen by the user.

The bands can also be used to gauge volatility (with an unusual increase in width) and volume (increased brightness).

The brightness of the bands are determined by volume, the brighter the bands are, the greater the volume.