We're happy to announce that both Bollinger %B and Bollinger Bandwidth are now available to use on the web platform and mobile app.
Bollinger %B indicator helps you work out where price is in relation to the upper and lower Bollinger Bands.
This shows a reading of 1 if the price is trading at the upper band, or 0 if it's at the lower band.
Bollinger %B allows you to take readings of divergences that often precede market reversals:
- A bearish divergence occurs when there are lower highs in %B during an uptrend in price (higher highs)
- A bullish divergence occurs when there are higher lows in %B during a downtrend in price (lower lows)
The Bollinger Bandwidth gives a reading on the distance between the upper and lower Bollinger Bands:
- A low reading could be a sign that volatility is about to rise. Low volatility is often seen as a precursor to a spike in price.
- You can use the tool in a highly trending market. A fall in volatility is often seen when markets are consolidating, or momentum is building for the next move.
- A reversal in the direction of the bandwidth can be a sign of a market reversal, as it could mean a recent surge or slump in price is losing momentum