It measures the center of the price in a given period of time, and uses 2 different methods to plot upper and lower bands to show possible support and resistance.
True Center Band may look like some indicators, such as Center of Gravity (COG) and Polnomial Regression Channel (PRC). But there is one major difference, TCB never repaints, because it is not calculated by future data.
The first video is COG and the second one is TCB, both of them plotted on the same date and time frame.
On the 2nd video TCB is on band type3. You will see how COG repainted, but TCB didn't.
Check these video to see how TCB and COG/PRC plot differently in the same timeframe.
When using the TCB, center line is the main trend of the price movement, the bands indicate the ranges and possible overbought and oversold areas. In a strong uptrend, prices usually fluctuate between the first upper band and the second upper band. And a possible reversal will happen when price out of the bands.
True Center Band (TCB) indicator has 6 Parameters:
- Band Type: choose which type to plot on chart.
- Multiplier1: Only work on Band Type 2. To adjust the width of 1st upper and lower bands.
- Multiplier2: Only work on Band Type 2. To adjust the width of 2nd upper and lower bands.
- percent1: Only work on Band Type 3. To adjust the width of 1st upper and lower bands.
- Percent2: Only work on Band Type 3. To adjust the width of 2nd upper and lower bands.
- period: the number of bars used to determine the TCB.
This NinjaTrader indicator is developed under Version 7 and it is NOT necessarily compatible with NinjaTrader Version 6.5.
Please note: True Center Band is a very useful indicator, but cannot be used as sole evaluation criteria.
No comments:
Post a Comment