Bollinger Bands Percentage

Bollinger Bands Percentage

Bollinger Bands % or Bollinger Bands Percentage is one of the indicators used in the Sapphire Strat Maker - EA Builder.

It is calculated using the following formula:

Thus, by taking the difference between closing price to the lower band and dividing it by the difference of the upper and the lower price levels of a Bollinger Bands indicator, we can calculate this indicator.

It shows how far the price is from the bands. Values above 100 indicates that the price is above the upper band, while values below 0 point out the current closing price is below the lower band.

In a downtrend, values above 100 may point out a good point for entering a short position; in an uptrend, values below 0 may signify an entry point for a long position.

Divergences between the price and the indicator may be used to consider entry points aswell.

Remember to use other technical tools to confirm entry signals.