These Bands are calculated based on ATR levels, very useful for finding take profit and stop loss positions. They can also help you determine whether price is consolidating in a range or trending.
Although these are called reversal bands, another way you can use them is for placing your stop loss / take profit levels. ATR levels are a very common method to calculate a “Safer” place where you place these levels compared to using a simple % stop or take profit.
This is because the ATR takes into account the volatility of an asset so where Bitcoin could move 0.25% an altcoin could move 5%. The ATR helps account for this.
In the settings you have the option to display the Standard, Triple or Reversal Bands, you can change the source of the calculation, (some people prefer using HLC3 or OHLC4).
The 3rd option you have is the sensitivity setting where you can adjust the length of candles the bands are calculated on, by default you will have it selected on 3 which is our preferred length but we have set templates for you to cycle through between 1-5.