Bollinger Bands %B
Bollinger Bands %B or Percentage Bandwidth is an alternative implementation of the Bollinger Bands indicator. As with Bollinger Bands, this is a volatility indicator where the middle band is typically a 20 data point Simple Moving Average and the upper and lower bands generally have a deviation of 2. This indicator is unique and will provide different trade signals than Bollinger Bands. Buy signals are generated when the value of the %B is greater than 1, while sell signals are generated when the value of %B is less than 0.
- Exchange Website to monitor (Pro Tip: It doesn't have to be the same exchange you are currently trading on)
- Currency Pair to monitor for trade signals.
- Time Interval - The amount of time per each candle.
- Trade Signals
- Length - For determining the middle band
- Div Up - Standard Deviation for the upper band
- Div Down - Standard Deviation for the bottom band
It is recommended to use this indicator during sideways markets to catch the dips and rises.