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