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I am looking for the simple Bollinger Band Width indicator.
The formula is as follows: (Upper BB - lower BB) / Middle BB
It is a very simple indicator. If some has seen this indicator could you please send me a link, and if not is there some one out there that can whip this together, which can also include an upper and lower threshold number to be entered.
Can you help answer these questions from other members on NexusFi?
(Upper BB - lower BB) / Middle BB This is the official formula given by John Bollinger himself. The denominator of the middle line will then give you a guage. When the indicator is very low, say 5 or 10 you are in a squeeze or better a consolidation, and when it goes above a certain threshold your have a breakout.
Thanks received the file. I will of course explain with example how to use this. Looking at the indicator, is it possible to perhaps multiply the number before plotting by 1000, so that we get larger numbers instead of numbers 0.0023 etc. I think this will then be easier to put threshold line more easier and be more managable. If possible I would like to test both options.
I have mananged to change the code to give a multiplier of 1000. Thank you very much I will test it and then post a detailed description with example as to how I use it.
First a thanks to Zeller4 for his contribution to this indicator.
I trade a simply as possbile, by reading the PRICE action, then only do I see if a simple indicator can confirm.
The Bollenger Bands work, is that when you start a TREND, the Top and Bottom Band EXPAND, and when there is NO trend they CONTRACT. By measuring the Width of the Bands, as soon as the WIDTH BANDS makes a turn UP from the Bottom, you will see a very sharp turn in the upper band for a LONG entry, or if the Botton Band turns down very sharply you have an Entry for a SHORT. By just looking at the BB Width indicator, you can tell if you are starting a TREND move (up or down) if the indicator goes UP (i.e. Widening of the BB Bands). As soon as the BB Width indicator starts to go down and remains in a flat position, you are in a CHOP zone (i.e. called a squeeze). Look at the Green circles on the chart for the sharp turn and the indicator pointing up. See also the Chop zone where the indicator is going down and Flat at the bottom.
I hope this can help some traders as an extra tool and also another way of looking at a chart.
