Incredible Charts: Bollinger %b Indicator and Band Width Indicator http://www.incrediblecharts.com/indicators/bollinger_percentage_b_b...

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A~C Indicator Guide > Momentum Oscillators > Bollinger %b

Indicators A ~ Z > A ~ C > Bollinger %b
Accumulation Education > Momentum Oscillators > Bollinger %b
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ATR Bands Bollinger %b Indicator - and Band Table of Contents

ATR Trailing Stops Bollinger %b Indicator - and Band

Average True Width Indicator Width Indicator
Range
Bollinger %b Trading Signals
Bollinger %b
30-Day Free Trial
Trending Market
Bollinger Bands Bollinger %b is described by John Bollinger on his website. It Go long if a retracement
Candlestick Charts
indicates the position of Closing Price relative to Bollinger Bands® records a negative number on Incredible Charts Pro 6
Chaikin Money Flow
Chaikin Oscillator
plotted at 2 standard deviations around a 20-Day simple moving %b (i.e. price has closed
Chaikin Volatility average. Bollinger also describes a separate Band Width Indicator below the lower Bollinger
Chandelier Exits that reflects the width of the Bollinger Bands. Band) and is followed by a
Commodity Channel second retracement where
Index %b remains positive. Windows Mac Linux
Compare Prices Go short if a rally records a
Coppock Indicator Bollinger %b Trading Signals value above 100 for %b (the
upper Bollinger Band) and is My Account
D~L
followed by a second rally
Detrended Price Bollinger describes the following signals which can be used in a where %b remains below 100.
Oscillator trending or ranging market: Example
Directional Bollinger Band Width Indicator
Movement
Trending Market Example
Donchian Channels Bollinger %b Setup
Ease of Movement Bollinger %b Formula
What's New
Elder Ray Index Go long if a retracement records a negative number on
Equivolume Charts %b (i.e. price has closed below the lower Bollinger Data Feed Changes
Exponential Moving Heikin-Ashi Candlesticks
Band) and is followed by a second retracement where Pivot Points
Average
Fibonacci %b remains positive. Ichimoku Cloud
Extensions Invert Vertical Axis
Donchian Channel Breakouts
Fibonacci Go short if a rally records a value above 100 for %b (the upper Bollinger Band) and is
Retracements Trading with Candlesticks
Force Index followed by a second rally where %b remains below 100.
Ichimoku Cloud
Keltner Channels Use failure swings on Welles Wilder's Relative Strength Index to confirm the signals. Trading
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Mouse over chart captions to display trading signals.
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Twiggs Momentum
Oscillator 1. Go long [L] when a retracement on Bollinger %b respects the zero line after the previous retracement
Twiggs Money Flow was below zero.
Typical Price
2. Exit [X] when a rally on Bollinger %b falls short of 100 after the previous rally exceeded 100.
V~Z 3. Go long [L] when the retracement on Bollinger %b reverses while above zero after the previous
Vertical Horizontal retracement reached zero.
Filter (VHF) 4. Exit [X] after another bearish divergence on Bollinger %b, from above to below 100.
Volatility
Volatility Ratio
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Volume
Volume Oscillator Bollinger Band Width Indicator
Weighted Close
Weighted Moving
Average Bollinger's Bandwith Indicator is used to warn of changes in volatility. As we know from using Bollinger Bands,
Wilder Moving a squeeze where the bands converge into a narrow neck often precedes a rapid rise in volatility. A Bollinger
Average Band squeeze is highlighted by a fall in the Band Width indicator to below 2.0%. Bollinger claims that a drop
Williams %R below 2% on the S&P 500 has led to many spectacular moves, but warns that the market often starts with a
Williams
fake move, in the wrong direction, before the real move commences.

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Incredible Charts: Bollinger %b Indicator and Band Width Indicator http://www.incrediblecharts.com/indicators/bollinger_percentage_b_b...

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EXAMPLE

Goldman Sachs is displayed with 20-day Bollinger Band Width.

Mouse over chart captions to display trading signals.

1. Go long [L] when Bollinger Band Width starts to rise after contracting to a historic low.

Bollinger requires contractions below 2.0%, but wider contractions provide perfectly adequate signals.

Bollinger %b Setup

The default setting for Bollinger %b and Band Width is a 20-Day simple moving average with bands drawn at
2 standard deviations.

See Indicator Panel for directions on how to set up an indicator — and Edit Indicator Settings to change the
settings.

Bollinger %b Formula

The forumula for Bollinger %b is (Closing Price - Lower Band) / (Upper Band - Lower Band).

The formula for Bollinger Band Width is (Upper Band - Lower Band) / Simple Moving Average for the same
period.

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Incredible Charts: Bollinger %b Indicator and Band Width Indicator http://www.incrediblecharts.com/indicators/bollinger_percentage_b_b...

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