Bollinger Bands %B

Type

Trend indicator

Short introduction

Bollinger bands, named after their inventor John Bollinger, are based on a moving average with an upper and lower band along with the daily movements of the instrument's price The "Bollinger Bands %B" indicator is a variant of this classic. Bollinger Bands are usually abbreviated as "%B".

Statement

The "Bollinger Bands %B" indicator shows where the price is in relation to the underlying "bands".

Formula/calculation

%B = (Price - Lower Band)/(Upper Band - Lower Band)

Interpretation

The indicator is helpful in identifying trends and trading signals.

Default setting

• Basis: 20-Day Moving Average
• Smoothing: MA

• Standard deviation: double

Example: Chart with Bollinger Bands %B