Bollinger Percent B Analysis Signals
Created by John Bollinger
Percent B Comes from Bollinger Bands Calculation.
This is an oscillator trading which has 3 lines - 0, 50, 100
- 0 represents lower Band
- 50 represents middle Band
- 100 represents upper Band
Percentage B oscillates between these three3 points and it shows where the price is relative to the 3 Bollinger Band.
%b indicator
When the price gets to the top line, the tool hits 100: if the price goes over, the tool goes to +100.
When the price touches or checks the lower band, the oscillator gets to 0: if the price goes below the lower band, the oscillator goes to -0.
When the price tests/touches the mid band then the oscillator trading indicator will be at 50.
Calculation
Percent B = Currency Price Close - Lower Band * 100
Upper Band - Lower Band
FX Analysis and How to Generate Trading Signals
% B shows to what degree the price closes above/below any of the bands.
Buy Signal
Oscillator Values Over 50 Show Bullish Signs.
% b Bullish Buy Signal
Sell Trade Signal
Oscillator Indicator values/readings below 50 is a bearish.
%b Sell Signal Indicating a Bearish Trade
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