Bollinger %B Technical Analysis & Bollinger %B Trading Signals
Created by John Bollinger
Percent B indicator is derived from Bollinger Band.
This is an oscillator trading which has 3 lines - 0, 50, 100
- 0 represents lower Band
- 50 represents middle Band
- 100 represents upper Band
Percent B oscillates between these three points and it shows where the price is in relation to the 3 Bollinger Bands.
%b indicator
When the price tests/touches the upper band then the oscillator hits 100, if price moves above upper band the oscillator indicator moves to +100
When the price touches the lower band then the oscillator hits 0, if price crosses below the lower band the oscillator indicator moves to -0
When the market price touches/tests the middle band then the oscillator indicator will be at 50.
Calculation
Percent B = Price Close - Lower Band * 100
Upper Band - Lower Band
Index Technical Analysis & How to Generate Signals
% B shows to what degree the market price closes above or below any of the bands.
Buy Trading Signal
Oscillator Technical values above 50 is a bullish signal.
% b Bullish Buy Trading Signal
Sell Trade Signal
Oscillator Technical values below 50 is a bearish signal.
%b Bearish Sell Trade Signal
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