Advanced Tools Plug-in:

Percent Bollinger Indicator

Bollinger Bands are calculated as a simple moving average shifted up and down by a number of standard deviations. Percent Bollinger Bands relate the underlying price of an instrument to the range of these Bollinger Bands. This gives the user an adaptive measure of volatility which can be used in the same way as other momentum indicators.

Buy when the indicator bottoms below 0.00 and turns up, and sell when the indicator peaks above 100.00 and turns down. You can also use the indicator by looking for divergence between the indicator and the charts. Sharp price advances and declines usually accompany market tops and bottoms, and as a market climbs or falls toward a bottom, the indicator will tend to initially follow the price trend and then fall off, leading to bullish or bearish divergences with the chart.

Buy/Sell Signals

• A Buy Signal happens when: %B value today is greater than Zero AND yesterday’s %B value is less than or equal to 0.
• A Sell Signal happens when: %B value today is less than Zero AND yesterday’s %B value is greater than or equal to 0