You might wonder, is there an indicator can show the trend, different levels of support and
resistance, and the boundary of price action? The answer is yes, True Center Band (TCB) indicator is
capable of doing all of them.
It consists of one center line to measure the center of price range within a given period,
and three channels (bands) represent different support and resistance levels.
True Center Band may look like some other indicators, such as Center of Gravity (COG) and polynomial
Regression Channel (PRC). But there is one major difference, TCB never repaints, because it is not
calculated by future data. Reliability makes TCB looks good, works better.
True Center Band is specially designed to work on all intraday charts (tick, mins, renko, range, etc.) and daily chart.
It also works on all markets (Stocks, Futures, Forex, Options,ETF, etc.)
A good indicator should make complicated things simple.
Therefore, there is only 1 parameter.
Period: the number of bars used to calculate the True Center Band (TCB).
It's very easy to understand, if you want TCB to plot a long-term trend then set a big number such as 50.
If you want to see a short-term trend, then set a small number such as 15.
True Center Band will automatically plot the support and resistance levels based on the total number of bars loaded on chart.
For example, if we load 5 days for a 1-min chart, TCB will plot like the image below.
For Minute chart of more than 30mins, in order to see a longer range of support and resistance levels, it's better to load more days in "Data Series".
If we load 50 days for a 30-min chart, the support and resistance lines will be calculated by the data from last 50 days.
If you want to see the recent range of support and resistance levels, then just load the number of days you desire.
Take a closer look at this video below, you will find out how Polynomial Regression Channel indicator (PRC2) repaints and TCB doesn't repaint at all.
Examples of How to use True Center Band indicator on Minute charts.
Examples of How to use True Center Band indicator on Daily charts.
How to correctly set up True Center Band indicator.
This NinjaTrader indicator is developed under Version 7 and it is NOT necessarily compatible with NinjaTrader Version 6.5 or any other beta version.
Please note: True Center Band is a very useful indicator, but cannot be used as sole evaluation criteria.
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