VT Trader™ 2.0 Logo
Key Features and Benefits of VT Trader™

Bollinger Percent B

Bollinger %b is an important indicator derived from John Bollinger's original Bollinger Bands indicator. %b depicts the location of the most recent close price in relation to the Bollinger Bands as well as to what degree it is above or below any of the bands.

The Bollinger Percent B equation can be constructed as:

Percent B = ((Close - Bollinger Lower Band) / (Bollinger Upper Band - Bollinger Lower Band))*100

Interpretation

www.cmsfx.com

If the close price is equal to the upper Bollinger Band, %b will be 100 (percent). If the close price is equal to the lower Bollinger Band, %b will be 0.0. A %b value of 50 means the close price is equal to the middle Bollinger Band.

Furthermore, readings above 100 and below 0 indicate that the close price is outside of the Bollinger Bands by a corresponding percentage or the Bollinger Bandwidth. A %b value of 125 means that the close price is above the upper Bollinger Band by 25% of the Bandwidth. A %b value of -25 means that the close price is below the lower Bollinger Band by 25% of the Bandwidth.

Implementation

The Bollinger Bands Price, Periods, MA Type, and Standard Deviations inputs have been parameterized to allow the user full customization of this indicator. Furthermore, red reference lines at +100, +50, and +0.0 have also been included.

The materials presented on this website are solely for informational purposes and are not intended as investment or trading advice. Suggested reading materials are created by outside parties and do not necessarily reflect the opinions or representations of Capital Market Services LLC. Please refer to our risk disclosure page for more information.