The Bollinger Bands %B (PCNTB) indicator tells us where a market is at within the Bollinger Bands.
Pane: Bottom
Formula:
%B = ( Close - Lower Bollinger Band ) / ( Upper Bollinger Band - Lower Bollinger Band)
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When %B is: |
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Above 1.00 |
The symbol is Above the Upper Bollinger Band |
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At 1.00 |
The symbol is At the Upper Bollinger Band |
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Between 1.00 and 0 |
The symbol is within the Upper and Lower Bollinger Bands |
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At 0 |
The symbol is At the Lower Bollinger Band |
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Below 0 |
The symbol is Below the Lower Bollinger Band |
Properties
Input: The Symbol field on which the study will be calculated.
Input Field: The Symbol field on which the study will be calculated. Input Field is set to "Default", which, when viewing a chart for a specific symbol, is the same as "Close".
Period: John Bollinger, the creator of this study, states that periods of less than ten days do not seem to work well for Bollinger Bands. He says that the optimal period is 20 or 21 days. The application uses a default of 20.
Standard Deviation: The multiple of standard deviations by which to shift the upper and lower bands. John Bollinger suggests, if you reduce the number of days used to calculate the bands, you should also reduce the number of deviations and vise versa. For example, if you use a period of 50, you may want to use 2.5 as the standard deviation. For a period of 10, you may want to use 1.5 or 1.0. The application uses a default of 2.0
Type: The type of Moving Average used to calculate the Bollinger Bands. The default type is SIMPLE Moving Average.
Plot: The color, line style and line width of the %B plot.
Overbought Level: Value of Overbought Level Line. The default is 1.00.
Overbought Line: The color, line style and line width of the Overbought Level Line.
Mid Level: Value of Mid Level Line. The default is 0.50.
Mid Line: The color, line style and line width of the Overbought Level Line.
Oversold Level: Value of Overbought Level Line. The default is 0.00.
Oversold Line: The color, line style and line width of the Overbought Level Line.