Bollinger Band Size

Creator: John Bollinger

Default period: 20

Default avg period: 10 

Default Standard Deviation: 2

In the Bollinger Band Size indicator, two lines are plotted below the chart.

1 – Green line represents Bollinger Band Size

2 – Red line represents the Average

The Bollinger bands are a measure of volatility. Using standard deviation, they are displaced from the moving average line.

This indicator displays a line that calculates the difference between the sizes of the bands. An increase in size indicates a higher level of volatility, whereas a reduction in size indicates a lower level of volatility.

During periods of high volatility, the distance between the two bands will widen and the Bollinger Band Width will increase.

The Bollinger bandwidth above the moving average indicates an increase in volatility.

Click here to learn more about the Bollinger bands channel line indicator.

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.