%B Indicator

Bollinger Bands %b is a Metatrader 4 (MT4) indicator and the essence of the forex indicator is to transform the accumulated history data. Bollinger Bands %b provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

It is recommended to use period Simple Moving Average as the middle line, and plot top and bottom lines two standard deviations away from it.

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Bollinger %b and Band Width. Bollinger %b is described by John Bollinger on his arifmudipriyatno.ga indicates the position of Closing Price relative to Bollinger Bands® plotted at 2 standard deviations around a Day simple moving arifmudipriyatno.gager also describes a separate Band Width Indicator that reflects the width of the Bollinger Bands.

When price is "Walking the Bands" these breakthroughs are not actual reversal signals. Price may indeed reverse somewhat but it often turns once again and resumes the overall trend. Identifying when a Breakthrough signifies an actual trend reversal can be a difficult event pinpoint. This is mostly done through historical technical analysis and research. Trading Signals can also be found using the same principles. Opportunities to trade with the trend can present themselves when Breakthroughs occur in the opposite direction of the underlying trend.

Instead of relying on the appearance of prices in relation to the Bands, technical analysts can use exact values to help make more informed decisions. During a well-defined trend, breaks above 1 and below 0 become much more significant. Can toggle the visibility of a line indicating overbought levels. Can toggle the visibility of a line indicating oversold levels. Sets the number of decimal places to be left on the indicator's value before rounding up. While these signals were good for trend identification, traders would likely have had issues with the risk-reward ratio after such big moves.

Traders might consider using this method to identify the trend and then look for appropriate overbought or oversold levels for better entry points.

Surges towards the upper band show strength, but can sometimes be interpreted as overbought. Plunges to the lower band show weakness, but can sometimes be interpreted as oversold. A lot depends on the underlying trend and other indicators. Click here for a live chart. The default parameters 20,2 are based on the default parameters for Bollinger Bands.

These can be changed accordingly. According to Bollinger, these stocks could be starting new up swings. This scan is just a starting point. Further refinement and analysis are required. According to Bollinger, these stocks could be starting new down swings. In order to use StockCharts. Click here to learn how to enable JavaScript. Log In Sign Up Help.