%B Indicator

Sunday 6 July 2008 @ 4:22 pm

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.