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Charts

Boll %B

The Boll %B indicator finds the position of a security within Bollinger Bands. BBoll %B is simply a percentage measure of a security’s location between the bands. Boll %B can be lower than 0 or higher than 100 if price moves outside the bands.

Generally speaking, a Boll %B near or above 100 can suggest an overbought market, while a value near or below 0 can indicate an oversold market.

Configuration Options

  • Field: Price or combination of prices to use as the base for average calculations. Possible values include:
    • Open
    • High
    • Low
    • Close
    • Adjusted Close
    • HL/2 \( \left ( \frac{High + Low}{2} \right ) \)
    • HLC/3 \( \left ( \frac{High + Low + Close}{3} \right ) \)
    • HLCC/4 \( \left ( \frac{High + Low + Close + Close}{4} \right ) \)
    • OHLC/4 \( \left ( \frac{Open + High + Low + Close}{4} \right ) \)
  • Period: Number of bars to use in the calculations.
  • Standard Deviations: Number of standard deviations above and below the average to draw the bands.
  • Moving Average Type: Type of moving average to use in the calculations:
    • Simple
    • Exponential
    • Time Series
    • Triangular
    • Variable
    • VIDYA
    • Weighted
    • Welles Winder
    • Hull
    • Double Exponential
    • Triple Exponential
  • Color Selectors: Colors to use for graph elements.
  • Display Axis Label: Whether to display the most recent value on the Y axis.

Typically, bandwidth parameters will match the user’s preferred Bollinger Band parameters.

Formula

\[Boll\;\%B = \frac{(Price - Lower\;Band)}{(Upper\;Band - Lower\;Band)} \]