%B Indicator

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Summary

The %B Indicator normalizes the Bollinger Band price to fluctuate around zero, with the upper Bollinger band set to 100 and the lower Bollinger band to -100, for easier interpretation. The original author of the %B indicator appears to be Thomas Stridsman from a 1998 article in Futures magazine.

Screen Shots

Usage

The %B indicator seems to have many origins, and many discussions on how to use best use the %B indicator. Pierre Orphelin has gone on to say

” … In this sense, it behaves like Lambert’s CCI, rather than Wilder’s RSI”

. From what I’ve seen, read and understand, the %B indicator is very similar to the RSI, but take a gander for yourself, and if you get time to try the %B indicator, leave a post below and let us know what your opinion is.

Downloads

%B2 Indicator (ELD and Workspace)

Happy Trading!

Tags: B, Oscillator, Thomas Stridsman

One Response to “%B Indicator”

1. David Viola says:

   September 25, 2009 at 8:49 am

   Dear Sir,
   I have downloaded and installed %b into TradeStation.
   According to "Bollinger On Bollinger Bands" %b oscilates mainly between 1 and 0, exceeeding these values when price closes above upper or lower band.
   Your indicator for %b oscilates between 100 and -100.
   Could you please explain.

   Thanks,
   David Viola