Bollinger Bands

Developed by John Bollinger, Bollinger Bands are an indicator that allows users to compare volatility relative price levels over a period time. The indicator consists of three bands designed to encompass the majority of a security's price action.

A simple Moving Average in the middle

An upper band (SMA plus 2 standard deviations)

A lower band (SMA minus 2 standard deviations)

"Standard Deviation" is a statistical unit of measure that provides a good assessment of a price plot's volatility. Using the standard deviation ensures that the bands will react quickly to price movements and reflect periods of high and low volatility. Sharp price increases (or decreases), and hence volatility, will lead to a widening of the bands.

The Bollinger Bands indicator is a moving average with a pair of bands, one above and the other below. The Bollinger Bands are calculated by one of four methods depending on the value of Price Type.

Price Type = 0	calculate using the Closing price
Price Type = 1	calculate using the Opening price
Price Type = 2	calculate using the High price
Price Type = 3	calculate using the Low price

Default Parameters

Price Type is 0

Length is 20.

NumDevsUp is 2.0.

NumDevsDn is -2.0

Displace is 0

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