DislikedIt stay red as long as the price stay near the bottom band and I only did shorts. When it runs into the top band it changes to blue and I only made long trades. Seems like once price runs into either side it stays there and head in that direction for awhile.Ignored
OK, I tried a similar thing with the Bollinger Bands (BB).
The first graph shows the trades without BB
The second shows trades with BB. Here we only trade Long when the price is in the upper band and Short when in the lower one.
The third is a variation of this in that we don't trade if the price goes outside the BB (which are at the default 2 standard deviations)
Unfortunately, it doesn't look like this makes a positive impact