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What is Bollinger percent B?
Bollinger %B is a technical indicator in trading that measures where a securityâs price stands in relation to its Bollinger Bands, which are composed of a moving average and two standard deviation lines. Aside from Bollinger %B, you can refer to Bollinger %B Pro for more attractive features.
But, what is %B in Bollinger Band?
%B represents the location of the input price in relationship to the upper Bollinger band & lower Bollinger band. This is a useful indicator for overbought/oversold identification. There are 7 basic relationships that can be quantified:
- %B > 100: The input price is above the upper band
- %B = 100: The input price is exactly on the upper band
- %B > 50: The input price is above the middle band
- %B = 50: The input price is exactly on the middle band
- %B < 50: The input price is below the middle band
- %B = 0: The input price is exactly on the lower band
- %B < 0: The input price is below the lower band
You can also check out our range of free NinjaTrader 8 indicators and find tools that complement your current setup.
FAQs
1. What is the formula for the %B indicator?
The Bollinger %B indicator calculates the formula: (Price - Lower Band) / (Upper Band - Lower Band).
2. Why choose Bollinger %B?
Bollinger %B simplifies the interpretation of Bollinger Bands by offering a clear percentage-based metric. Traders can use it to gauge market volatility, identify entry or exit points, and confirm trend strength, especially when combined with other indicators.
Key Features
- Plot the Bollinger %B
- Let you choose among 9 popular moving-average types for the underlying Bollinger middle line
- Let you optionally smooth the underlying Bollinger middle line
- Colorize the plot with gradient based on the value of %B
- Be NinjaScript ready for advanced usage, only restricted by your imagination NT8 only
Software Changelog
- 15 Oct 2021:- Massive changes, fixes, and improvements were made (Display name, Z order).
- 26 Oct 2018:- The indicator was re-exported to be compatible with recent changes of the platform; the toolbar menu was removed.
- 02 Sep 2016:- Setting groups were reordered; the indicator was re-exported to be compatible with recent changes of the platform.
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