Double Bollinger Cloud

The Double Bollinger Cloud is a volatility-based channel indicator designed to visualize dynamic support, resistance, and trend strength using four independent Bollinger Band calculations.

Unlike traditional Bollinger Bands that use a single moving average and closing price, this indicator combines:

• 
  EMA-based Bollinger Bands on High prices
  
• 
  WMA-based Bollinger Bands on High prices
  
• 
  EMA-based Bollinger Bands on Low prices
  
• 
  WMA-based Bollinger Bands on Low prices
  

The resulting cloud structure creates a visual representation of market expansion, contraction, and directional bias.

How It Works

Green Cloud (Upper Structure)

The green cloud is formed by Bollinger Bands calculated from High prices using both EMA and WMA.

This area represents:

• 
  Dynamic resistance
  
• 
  Bullish volatility expansion
  
• 
  Potential breakout zones
  

Red Cloud (Lower Structure)

The red cloud is formed by Bollinger Bands calculated from Low prices using both EMA and WMA.

This area represents:

• 
  Dynamic support
  
• 
  Bearish volatility expansion
  
• 
  Potential breakdown zones
  

Trading Interpretation

Bullish Conditions

• 
  Price remains above the red cloud
  
• 
  Price interacts with or breaks above the green cloud
  
• 
  Green cloud begins expanding
  

Bearish Conditions

• 
  Price remains below the green cloud
  
• 
  Price interacts with or breaks below the red cloud
  
• 
  Red cloud begins expanding
  

Consolidation

• 
  Price trades between clouds
  
• 
  Cloud width contracts
  
• 
  Volatility decreases
  

Key Features

✔ Dual Moving Average Methodology (EMA + WMA)

✔ High-Price and Low-Price Volatility Analysis

✔ Dynamic Volatility Clouds

✔ Trend Identification

✔ Support and Resistance Visualization

✔ Works Across Stocks, Indices, Forex, Crypto, and Commodities

Default Settings

• 
  Length: 20
  
• 
  Standard Deviation: 2
  
• 
  EMA Source: High / Low
  
• 
  WMA Source: High / Low