Published on: July 1, 2025
Bollinger Bands are a powerful technical analysis tool developed by John Bollinger in the 1980s, designed to measure the volatility of a financial instrument and its price trends. The Bollinger Band consists of three lines: the middle band (a simple moving average, or SMA), an upper band, and a lower band. The upper and lower bands are calculated based on the price volatility, typically set two standard deviations away from the middle band.
Bollinger Band Scanner in RZone
RZone, a powerful platform for quantitative analysis and algorithmic trading, enables users to scan for and analyse various sectors, stocks, commodities, ETFs, and mutual funds.
With the Bollinger Band Scanner in RZone, users can quickly filter through multiple instruments to detect potential bullish and bearish trends based on the price’s behaviour relative to the Bollinger Bands.
To scan the stocks, go to Indicator Digger > Bollinger Band
Beyond stocks, users can assess trends across sectors, commodities, ETFs, and mutual funds. The platform provides users with a holistic view of market behaviour, enabling traders to gauge not just individual stocks but entire sectors or markets.
Building and Backtesting Custom Trading Systems with RZone
In addition to scanning trends and analysing price data, RZone offers a System Builder that allows traders to create their own custom trading strategies.
What sets RZone apart is its powerful backtesting capability. After creating a trading system, users can backtest their strategies on historical data to see how the system would have performed in the past. This helps traders assess the viability of their strategy before applying it to real-time markets.
With the ability to backtest, refine, and optimise strategies, RZone provides users with a complete toolkit for systematic trading. Whether you’re a day trader looking for short-term setups or a long-term investor aiming to capture broader market trends, the combination of the Bollinger Band Scanner and system-building tools empowers you to make more informed decisions.
