Bollinger Bands Oscillator

Bollinger Bands Oscillator BBO

John Bollinger developed - based on his famous bands and construction of the stochastic formula for Lane - an oscillator, which is the situation of course reflects values ​​within or outside the bands. Bollinger linked here has its own approach to the inclusion of stochastic volatility with the concept. The oscillator, often referred to as% B has, in appearance as well as certain similarities with the Slow Stochastics.

Even when Bollinger Bands Oscillator (BBO), first the usual calculation steps are part of the Bollinger bands. For this purpose (in the original approach), a simple moving average constructed, which serves as Mittlellinie, around it is an upper and lower band of adding or subtracting twice the standard deviation defined. A modification of the original approach can be achieved through the use of exponential or weighted average or weighted price developments as well as typical variations. Also, the period setting and related to the multiplication factor for the standard deviation are customizable.


% B is calculated by applying the Stochastics formula, the difference between closing price and the lower band is divided by 100 multiplied by the difference between the upper band and lower band. The result is an oscillator that (the current closing price is within the bands) in most cases is 0-100. The value 100 indicates - how can easily understand - the opening through the upper band, the value 0 represents the average of the lower bands. Values ​​above 100 or below 0 indicate that the market value of the belt system is broken.

For the interpretation is going on at first said that the indicator provides quite good and many signals, but sometimes too early. The most important application is the detection of extreme situations where the likelihood of an imminent price correction is very high. The points of intersection in the extreme zone area (indicator values ​​0 and 100) can be used as a concrete trading signals. Furthermore, a change in direction can be interpreted as an indication of BBO to changes in price momentum. Trading signals can be generated by a signal line is constructed and used the intersection points of the indicator with its signal line as long (cut up) or sell signal (cut down). A signal filtering is possible by the area above the center line only buy signals are traded in the area below the center line only sell signals.

Bollinger bands explained forex

Bollinger Bands

As the name suggests a technical analysts are of the same name going back there at the Bollinger bands to one of the most common indicators at all. The approach can be classified into a number of price bands in the 60 years which have their origin. The aim of all these approaches was to construct an indicator that should make the "true price trend" is visible and free the rate changes from insignificant fluctuations (keyword "market noise").

Following the development of technical analysis are trend lines and trend channels that basis be regarded as a forerunner of all price bands, also played an important role in the implementation of moving averages which plays in the bands associated with all course a crucial role. The latter statement is clear when one considers to be the granddaddy of all popular Envelopes rate band indicators, this is nothing more than two to a certain percentage of a moving average shifted around track lines. All approaches have in common the goal of the course during a high percentage of construction within the bands to "catch" (the prices move in the "normal" range), and - by extension - to make support and resistance levels visible.

Based on the known weaknesses of the approaches to date Bollinger wanted to create a course following system, which should include the volatility component. This he achieved by making full mathematical standard deviation in the concept-oriented and so the design of the straps on the data distribution. Specifically, he was doing this in such that he first constructed a simple moving average (now partly also find other types of average use) and then calculated the standard deviation on the share price. Illustrative of this is shown on how the values ​​fluctuate around their average. A large standard deviation indicates a volatile market, a low market value during a rather quiet. Could be "trapped" because of the simple standard deviation of only about 70 percent of the courses he opted for a multiplication by a factor of 2, which now holds 95 percent of all values ​​already within the Bollinger bands.


In the original concept of Bollinger find simple moving averages Duch (SMA) using closing prices of the period use. Both can be adjusted individually, instead of a simple exponential or even weighted averages are possible, instead of closing prices can also typical rate or weighted versions are used. For the typical price high, low and close are added and then divided by 3, the weighted average price of the closing price of a higher rank takes over with a certain multiplication factor (usually 2). Resulting in the formation of SMA (standard 20 periods) and thus a factor for multiplication (Standard 2) is concerned, it is noted that the user should make sure that the bands are basically as close as possible to the course events, a few openings exist and should be the center line more support line for the breakdown point. In addition to the aforementioned standard combination bands also often with the combination of 10 periods and 1.5 standard deviations or 50 periods and 2.5 standard deviations are chosen.

When you look at the actual significance of the Bollinger Bands is basically between trendsetting and trend-less distinct phases. In the case of a free market trend curve form the support and resistance bands. This is evident when you look at the chart that the course is one of the bands at errreichen to move back toward the other belt, so to speak between the two bands "jumps back and forth." During periods of strong market trend Bollinger recommends the use of supportive strength of a trend indicator, for example, or On Balance Volume Relative Strength Index. The combination of the two indicators is then ultimately responsible if it can be assumed with a break of bands starting from a trend or not. In the event that the trend strength indicator confirms the bands breakthrough can be observed that the center line often represents a support for corrections.

Another application of the concept is seen in the evaluation of top and bottom formations. As a buy or sell each setup, the configuration is defined outside of the first leg and second leg within the upper or lower Bollinger Bands. Finally, the indicator provides regarding the width of the tape, of course, a good indication of the prevailing volatility at a given time. While trend-less market phases narrow bands indicate a low level of market activity during a prolonged continuation of this situation can be speculated on a major move, but not its direction. Broad bands are indicative of strong fluctuations, however, as often observed at the beginning of consolidation. In the event of a lasting trend is also often identify a small bandwidth, identify specific signals are not here.

Trading Bollinger Bands Indicator

Bollinger Bands

When the Bollinger Bands are an indicator, which was developed in the 1980s by John Bollinger, to obtain a relative ratio of high and low prices and get insights into the market volatility.

Trading bands, so the tapes on which way with the price moving and somehow these mostly fenced, there have been before.

Trading Bollinger bands consist of three lines.

The middle band is a simple moving average is a simple moving average. The default value for the Trading Bollinger bands is at 20

The upper band is calculated by multiplying the standard deviation of the moving average over n periods by a factor k. The factor k is usually located on 2nd For the upper Bollinger band added one that is 2 times the standard deviation.

The lower Bollinger band is calculated as vice versa. Here the standard deviation from the moving average is subtracted. On the calculation they have to do not worry, though, because as good as any includes charting platform Trading Bollinger bands.

To get an idea to do that, I've plotted the Bollinger Bands times on the chart. There is a daily chart of EURUSD. It is clear that the bands move with the trend, what is clear, since they follow the moving average.

As a forex trader can use Bollinger Bands basic rules to act?

As with all indicators, there are again several ways to use Bollinger bands. One of the most popular methods is to sell when the price touches the upper band and buy when the price touches the lower band. The stop loss is placed over the upper or lower Bollinger band and serves as a take profit in most cases, the Bollinger Bands middle band. Take a look at the chart. As you can see, would have sales once the price touches the upper band, not very successfully. Few exceptions, I have marked with arrows. It easier to buy would be if the price touches the lower band. So that we can not act against the trend, but make use of it. If you had bought the last red arrow, you would complete the following trend was there.

Another characteristic of Bollinger Bands is going to deal with rising volatility, and to converge with low volatility. The price for some time is in such a channel, a strong eruption is quite likely. This property can be used for breakout trades.

Finally, I would advise against buying from touching the tapes immediately or sell. This may work, but it's better if you find the combination with other indicators, Bollinger Bands to so with a higher probability of good trades.

bollinger band stop v2

bollinger band stop v2
Bollinger Band Trailing Stop. NOTE: This trailing stop along with 7 others have been incorporated into the Profit Manager (automated trailing stops)B Bands Stop v1 indicator. BBForex - Bollinger Bands Forex: Home Forex screening, analytics and signals based on Bollinger Bands. Interactive charts with a wide array of technical

bollinger bands stop loss indicator

bollinger nabds stop indicator

Bollinger On Bollinger Band

Bollinger Bands books:
- Combining Bollinger Bands and RSI
- Dennis D Peterson - Developing a Trading System Combining RSI & Bollinger Bands
- John Bollinger - Bollinger On Bollinger Band
- John Hayden - How To Use RSI
- Technical Stock Analysis - Bollinger Bands and RSI
- A Wayne. Thorp - Measuring Internal strength - Wilders RSI Indicator

Bollinger Bands Middle Band

Bollinger Bands Middle Band
Bollinger bands can be applied to virtually any market or security. For all markets and problems, I would use a 20-day calculation period as a starting point and only stray from it when circumstances forced me to do it. As we extend the number of periods involved, should increase the number of employed standard deviations. At 50 times, two and a half standard deviations are a good choice, while at 10 times one and a half to do the job quite well.
50 periods with 2.5 standard deviation of 10 periods with 1.5 standard deviation
Upper range = 50 day-SMA + 2.5 (a)
Middle Band = 50-SMA day
Lower Band = 50 day-SMA - 2.5 (a) upper band = 10-day SMA + 1.5 (a)
Middle Band = 10-day SMA
Lower Band = 10-day SMA - 1.5 (a)
In most cases, the nature of the periods is immaterial; seems that all the answers precise Bollinger bands. I use the monthly and quarterly data, and I know many traders apply the intraday basis.

Indicator derived from Bollinger Bands

Bollinger Bands
Avoiding Multiple Counting
Indicator derived from Bollinger Bands that I call% b can be of great help, using the same formula that George Lane used for stochastics. The indicator% b tells us where we are within the bands. Unlike stochastics, which is bounded by 0 and 100% b can assume negative values ​​and values ​​above 100 when prices are out of bands. In 100 we are in the upper range of 0 are at the lower band. Over 100 we are above the upper bands and below 0 we are below the lower band. Figure 7 for the exact formula.

Indicator% b lets us compare price action to indicator action. The pressure down, I guess we get to -20% for B and 35 for relative strength index (RSI). The next council on a slightly lower price levels (after the rally),% b only falls to 10, while RSI stops at 40. We get a buy signal triggered by the price action within the bands. (The first low came outside of the bands, while the second low was made inside the bands.) The buy signal is confirmed by RSI, as it not make a new low, giving us a confirmed buy signal.
Trading bands and indicators are good tools, but when they are combined, the resultant access to markets becomes powerful. Band width, another indicator derived from Bollinger Bands, may also interest traders. It is the width of the bands expressed as a percentage of the average range. When the bands narrow drastically, a sharp expansion in volatility usually occurs in the very near future. For example, a drop in band width below 2% for the Standard & Poor's 500 has led to spectacular moves. The market usually starts in the wrong direction after the bands tighten before really getting underway in January 1991 which is a good example (Fig. 9).

Bollinger Bands Basic rules

Bollinger Bands
Basic rules


One of the great joys of having invented an analytical technique such as Bollinger Bands is seeing what other people do with it. Although there are many ways to use Bollinger bands, a few rules that serve as a good starting point.
§ Bollinger Bands provide a relative definition of high and low.
§ that relative definition can be used to compare price action and indicator action to arrive at rigorous buy and sell decisions.
§ appropriate indicators can be derived from dynamics, volume, sentiment, open interest, inter-market data, etc.
§ Volatility and trend have already been deployed in the construction of Bollinger Bands, so their use for confirmation of price action is not recommended.
§ The indicators used for confirmation should not be directly connected to one another. Two indicators of the same category do not increase confirmation. Avoid colinearity.
§ Bollinger bands can also be used to clarify the real price models such as M-type tops and W-type bottoms, momentum shifts, etc.
§ Price, and no, you can go to the upper Bollinger Band and down the lower Bollinger Band.
§ closes outside the Bollinger Bands can be a continuation signals, not reversal signals - as demonstrated by the use of Bollinger Bands in some very successful volatility-breakout systems.
§ The standard parameters of 20 periods for the moving average and standard deviation calculations, and two standard deviations for the bandwidth are just that, by default. The actual parameters needed for any given market / task may be different.
§ The average deployed should not be the best one for crossovers. Rather, it should be descriptive of the intermediate-term trend.
§ If the average is extended to a number of standard deviations should be increased at the same time, from 2 to 20 periods of 2.1 to 50 times. Also, if the average is shortened the number of standard deviations should be reduced, from 2 to 20 periods, to 1.9 at 10 periods.
§ Bollinger bands are based on simple moving average. This is because a simple moving average is used in a standard deviation calculation and we want to be logically consistent.
§ Be careful about making statistical assumptions based on the use of standard deviation calculation in the construction of the bands. Sample size in most deployments of Bollinger Bands is too small for statistical significance and the distributions involved are rarely normal.
§ indicators can be normalized with% b, eliminating fixed thresholds in the process.
§ Finally, tags of bands are just that, Labels signals. A designation of the upper Bollinger Band is in non-and-out-sell signal itself. A label on the lower Bollinger Band is in non-and-out-myself to buy signal.

signals based on price touching the bands

signals based on price touching the bands

Bollinger Bands Tutorial

Chaiken innovation
Trading bands are lines plotted in and around the price structure to form an envelope to the effect of prices near the edges of the envelope that we are interested They are one of the most powerful concepts available to the technically based investor, but they are not, as is commonly believed, give absolute buy and sell signals based on price touching the bands. What they do is answer the perennial question of whether prices are high or low on a relative basis. Armed with this information, an intelligent investor can buy and sell decisions by using indicators to confirm price action.
But before we begin, we need a definition of what works. Trading bands are lines plotted in and around the price structure to form an "envelope." It is the action of prices near the edges of the envelope that we are particularly interested in the earliest reference to trading bands that are found in technical literature is in profit Magic of Stock Transaction Timing; author M approach. Hurst is on a drawing of smoothed envelopes around price to aid in cycle identification.

Bollinger bands two standard deviations

Bollinger bands two standard deviations

Bollinger Bands
Responding to questions
Placing on the market that happens is always a better approach than telling the market what to do. In the late 1970s, while trading warrants and options and in early 1980, when index option trading started, I focused on volatility as a key variable. To volatility, then, I turned once again to create my own approach to trading bands. I tested any number of volatility measures before selecting the standard deviation as a method by which to set the band width. I became especially interested in the standard deviation because of its sensitivity to extreme deviations. As a result, Bollinger Bands are extremely quick to react to large moves in the market.

Bollinger bands are plotted two standard deviations above and below the 20-day simple moving average. The data used to calculate the standard deviation are the same data as those used for simple moving average. Basically, we used standard deviations ranging bands around the plot moving average. The time frame for the calculations is such that it is descriptive of the intermediate-term trend.

Quick Look at Bollinger Bands

Quick Look at Bollinger Bands
Bollinger bands is a band-like analysis
Alpha Beta trend. It can be used as the system itself or with oscillators such as Relative Strength Index (RSI). The analysis is standard in both Reuters Stuttgart (RTA) and Reuters Technical Analysis for Unix

Interval that is closed under the bottom band, followed by another that closes within, may Bollinger Bands signal a reversal and a good time to buy.
If prices in a downtrend and back in the bands, this is interpreted as a signal of the current Bollinger Bands downward trend will continue and that the market will move sideways and then probably come back.
Bollinger bands formed area of ​​support and resistance. I use to take profits. If prices break above or below the bands, it results in change support and resistance.
Trend reversals can be verified when used with an oscillator such as Relative Strength Index (RSI). Bollinger Bands Signals, such as:
Bollinger Bands Price to be close to the lower band with RSI confirms the trend reversal should be safe buying signal.
Price Bollinger Bands divergence with RSI can confirm the top or bottom of the band (see Fig. 1).
A final point - as any other technical analysis technique, the trader must incorporate their own personality and comfort levels of trade rules Bollinger bands.

Quick Look at Bollinger Bands

Quick Look at Bollinger Bands
Bollinger bands is a band-like analysis
Alpha Beta trend. It can be used as the system itself or with oscillators such as Relative Strength Index (RSI). The analysis is standard in both Reuters Stuttgart (RTA) and Reuters Technical Analysis for Unix

Interval that is closed under the bottom band, followed by another that closes within, may Bollinger Bands signal a reversal and a good time to buy.
If prices in a downtrend and back in the bands, this is interpreted as a signal of the current Bollinger Bands downward trend will continue and that the market will move sideways and then probably come back.
Bollinger bands formed area of ​​support and resistance. I use to take profits. If prices break above or below the bands, it results in change support and resistance.
Trend reversals can be verified when used with an oscillator such as Relative Strength Index (RSI). Bollinger Bands Signals, such as:
Bollinger Bands Price to be close to the lower band with RSI confirms the trend reversal should be safe buying signal.
Price Bollinger Bands divergence with RSI can confirm the top or bottom of the band (see Fig. 1).
A final point - as any other technical analysis technique, the trader must incorporate their own personality and comfort levels of trade rules Bollinger bands.

Bollinger bands and MACD timing of price

Bollinger bands and MACD timing of price

Another useful indicator of pricing power is Average Directional Movement (ADX)

Many forex traders use Bollinger bands and MACD timing of price momentum and entering trades. This is wrong - they essentially measure the volatility - and only used for that purpose.

Standard error bands for MetaStock â ¢ for Windows

Standard error bands for MetaStock â ¢ for Windows
For interpretation refer to the article "The standard error bands" in the September 1996 issue of TASC, written by John Anderson.
21 Upper Band period (smoothed):
Mov ((21 * Sum (Cum (1) * C, 21) - Sum (Cum (1), 21) * Sum (C, 21)) / (21 * Sum (Pwr (Cum (1), 2) 21) - Pwr (Sum (Cum (1), 21), 2)) * Cum (1) + (Mov (C, 21, S) - Mov (Cum (1), 21 C) * (21 * Sum (Cum (1) * C, 21) - Sum (Cum (1), 21) * Sum (C, 21)) / (21 * Sum (Pwr (Cum (1), 2), 21) - Pwr (Sum (Cum (1), 21), 2))) +2 * (sqrt (((Sum (Power (C, 2), 21) - (Power (Sum (C, 21), 2) / 21)) - ((Sum (Cum (1) * C, 21 ))-(( Sum (Cum (1), 21) * Sum (C, 21) / 21))) / ((Sum (Power (Cum (1) 2), 21)) - (Power (Sum (Cum (1), 21), 2) / 21)) * ((Sum (Cum (1) * C, 21 ))-(( Sum (Cum (1) 21) * Sum (C, 21) / 21)))) / 19)), 3, C)
21 period Lower Band (smoothed):
Mov ((21 * Sum (Cum (1) * C, 21) - Sum (Cum (1), 21) * Sum (C, 21)) / (21 * Sum (Pwr (Cum (1), 2) 21) - Pwr (Sum (Cum (1), 21), 2)) * Cum (1) + (Mov (C, 21, S) - Mov (Cum (1), 21 C) * (21 * Sum (Cum (1) * C, 21) - Sum (Cum (1), 21) * Sum (C, 21)) / (21 * Sum (Pwr (Cum (1), 2), 21) - Pwr (Sum (Cum (1), 21), 2))) - 2 * (sqrt (((Sum (Power (C, 2), 21) - (Power (Sum (C, 21), 2) / 21)) - ((Sum (Cum (1) * C, 21)) - ((Sum (Cum (1), 21) * Sum (C, 21) / 21))) / ((Sum (Power (Cum (1) 2), 21)) - (Power (Sum (Cum (1), 21), 2) / 21 ))*(( Sum (Cum (1) * C, 21)) - ((Sum (Cum (1) 21) * Sum (C, 21) / 21)))) / 19)), 3, C)
21 period R2 (smoothed):
Mov ((Pwr (Corr (Cum (1), C 21.0), 2)), 3, C)
21 period Regression Slope:
(((Sum (Cum (1) * C, 21)) - (Sum (Cum (1), 21) * Sum (C, 21) / 21)) / ((Sum (Power (Cum (1), 2 ), 21)) - (Power (Sum (Cum (1), 21), 2) / 21)))
21% A period:
((C-Fml ("21 within a lower range (smoothed)")) / (Fml ("time top 21 band (smoothed)")-Fml ("21 within a lower range (smoothed )")))
21 period regression (smoothed):
Mov ((21 * Sum (Cum (1) * C, 21)-Sum (Cum (1), 21) * Sum (C, 21)) / (21 * Sum (Pwr (Cum (1), 2) 21)-Pwr (Sum (Cum (1), 21), 2)) * Cum (1) + (Mov (C, 21, S) - Mov (Cum (1), 21 C) * (21 * Sum (Cum (1) * C, 21) - Sum (Cum (1), 21) * Sum (C, 21)) / (21 * Sum (Pwr (Cum (1), 2), 21)-Pwr (Sum (Cum (1), 21), 2))), 3, C)

Better Bollinger Bands "

Better Bollinger Bands "
In a future article in a magazine, October 1998, Dennis McNicholl describes the use of Bollinger Bands and provides a means of making them tighter when markets are trending. He calls them Better Bollinger bands.

Here is the formula for MetaStock 6,5 or higher.

PDS: = Input ("periods", 2,200,20);
sd: = Input ("standard deviation" .01,10,2);
Alpha: = 2 / (PDS +1);
t: = alpha * C + (1-alpha) * (If (Cum (1) + PDS, C, previous));
Ut: = alpha * t + (1-alpha) * (If (Cum (1) + PDS, C, previous));
DT: = ((2-alpha) * mt-ut) / (1-alpha);
mt2: = alpha * ABS (C-dt) + (1-alpha) * previous;
ut2: = alpha * mt2 + (1-alpha) * previous;
dt2: = ((2-alpha) * mt2-ut2) / (1-alpha);
but: = dt + SD * dt2;
BLT: dt =- SD * dt2;
DT;
but;

Volatility bands long-term strategy

Volatility bands long-term strategy
This article "Volatility bands long-term strategy," by Ahmet Tezel, Ph.D., and Susan Koknar-Tezel, MS, which appears in this issue presents two different volatility band trading systems. One system uses bands based on moving averages and the other is based on bands using regression. To plot a Moving Average Asymmetric Volatility Price Bands in MetaStock for Windows, simply plot Bollinger Bands using 11 periods and 1.7 standard deviations. Then click your right-mouse button while the cursor is above the lower band and choose Properties. Change of standard deviations to the second This plot will now appear just as the bands discussed in the article.
To plot the regression Asymmetric Volatility Price Bands in Metastock for Windows, simply plot standard error Bands using 21 periods, 1 for standard errors, and 1 for smoothing periods. Then click your right-mouse button while the cursor is above the lower band and choose Properties. Change the standard error of 1.5.
To recreate the systems in MetaStock for Windows, choose System Tester from the menu Tools. Next choose New and enter the following trade rules and stop conditions. After entering this information, select Options and change the trade suspension to 1, then change the Trade Price Open. If you have MetaStock 6,5 into the first set of formulas. MetaStock 6,5 allows variables that will allow you to change the times when testing a lot easier.

Formulas for 6,5 MetaStock
MovAvg Asymmetric Volatility Price Bands
SIGNAL formulas
---------------
Enter Long:
Periods: = 11;
UpperBand: = BBandTop (close periods, S, 1.7);
BuySignal1: = Sum (close> UpperBand, 3) = 3;
BuySignal2: = CLOSE> UpperBand AND Ref (Low, -1)> Ref (upperband, -1);
BuySignal3: = LOW> UpperBand AND Ref (close, -1)> Ref (upperband, -1);
BuySignal4: = CLOSE> UpperBand and close> 1,4 * LLV (Low, Periods + 1) and Mov (volume, 3, C)> 2000 {assuming volume in 100 otherwise use 200000} And Mov (high, 3 S)> UpperBand AND Mov (high - low, 3, S)> Mov (high - low, periods, S);
BuySignal1 BuySignal2 OR OR OR BuySignal3 BuySignal4
Close Long:
Periods: = 11;
LowerBand: = BBandBot (close periods, S, 2);
SellSignal1: = Sum (close <LowerBand, 3) = 3;
SellSignal2: = Close <(1-.18) * HHV (high, Periods + 1) and amount (close <LowerBand, 2) = 2;
SellSignal3: = Close <(1-.18) * HHV (high, Periods + 1) AND HIGH <LowerBand;
SellSignal1 OR OR SellSignal2 SellSignal3

Stops
-----
Maximum loss DEBT ONLY
10.00 percent



Regression volatile Asymmetric Price Band
SIGNAL formulas
---------------
Enter Long:
Periods: = 21;
UpperBand: = STEBandTop (close periods, 1);
Amount (close> UpperBand, 3) = 3 and LinRegSlope (close, 21)> 0 and Taiwan (Correl (close, Cum (1), 21.0), 2, $)> = 0.2
Close Long:
Periods: = 21;
LowerBand: = STEBandBot (close, period, 1.5);
SellSignal1: = Sum (close <LowerBand, 3) = 3;
SellSignal2: = Close <(1-.18) * HHV (high, Periods + 1) AND HIGH <LowerBand;
SellSignal1 OR SellSignal2
Stops
-----
Maximum loss DEBT ONLY
10.00 percent

Trading Bollinger bands

Bollinger Bands
"Trading bands are one of the most powerful concepts available to the technically based investor, but they are not, as is commonly believed, give absolute buy and sell signals based on price touching the bands. What they do is answer the perennial question of whether The prices are high or low on a relative basis. Armed with this information, an intelligent investor can buy and sell decisions by using indicators to confirm price action.
But before we begin, we need a definition of what works. Trading bands are lines plotted in and around the cost to form struktura''plikot. It is the action of prices near the edges of the envelope that we are particularly interested in ...."
Taken from stocks and commodities, ext. 10:02 (47-51): Using Bollinger Bands by John Bollinger
For further interpretation concerning the above article found in the February 1992 issue of Technical Analysis of stocks and commodities.
Bollinger bands are embedded in MetaStock ™, however you may want to use individual custom formulas.
Custom formulas for the components of the Bollinger bands are as follows:
The upper range:
MOV (C, 20 C) + (2 * (std (C, 20)))
Lower Band:
MOV (C, 20 C) - (2 * (std (C, 20)))
Middle Band:
MOV (C, 20 C)
% B:
((C +2 * STD (C, 20) - mov (C, 20, S)) / (4 * STD (C, 20))) * 100
Band width:
((MOV (C, 20 C) + (2 * (std (C, 20)))) - (MOV (C, 20 C) - (2 * (std (C, 20 )))))
/ MOV (C, 20 C)