Re: Technical analysis bollinger %b-indicator

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Posted by Bert on April 18, 2007 at 16:29:11:

In Reply to: Re: Technical analysis bollinger %b-indicator posted by Mark on April 18, 2007 at 15:39:55:

: Hi Bert,

: I'm not real fluent in TA. What is the %b number you're looking for, and how do you calculate it?

: Thanks for the feedback, multiple lower level indicators would be good to add...

: Thanks,
: Mark
: --
: Fund Manager - Portfolio Management Software

Hi Mark,

I'm also not fluent in TA. The %b number indicates where the last price stands in relation to the bands. With 0 beeing the lower bollinger band and 100 the upper bollinger band. Unlike RSI the %b can also contain negative or values above 100. It is calculated according to the formula:

%b = (Last price - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)

As I understand it's used for divergence detection between price and indicator. When plotted it can also be used for pattern recognision like W and M graphs. Also I found this site useful: bollinger-b

More information can be found at Boullingers website: http://www.bollingerbands.com/services/bb/?page=5

It also discusses the BB width as an indication for volatility but I think that this is already visible in the current plot for BB.

kind regards,
Bert

Replies:

• Re: Technical analysis bollinger %b-indicator Mark 20:05:53 04/18/07 (0)