Bollinger %B Analysis & Bollinger %B Signals
Developed by John Bollinger
Percent B indicator is derived from Bollinger Band.
This is an oscillator trading which has Three 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 in relation to the 3 Bollinger Bands.
%b indicator
When the price tests/touches upper band then the oscillator hits 100, if price crosses above the upper band the oscillator moves to +100
When the price tests/touches lower band then the oscillator hits 0, if price crosses below the lower band the oscillator moves to -0
When the price tests/touches the mid band then the oscillator trading will be at 50.
Calculation
Percent B = Price Close - Lower Band * 100
Upper Band - Lower Band
XAU/USD Analysis & How to Generate Trading Signals
% B reflects to what degree the price closes above or below any of these bands.
Buy Signal
Oscillator Technical Indicator readings above 50 is a bullish signal.
% b Bullish Buy Signal
Sell XAUUSD Signal
Oscillator Indicator readings below 50 is a bearish signal.
%b Bearish Sell Trading Signal
Learn More Lessons:
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- How Can I Modify Take-Profit XAU/USD Order MT4 XAU/USD?
- XAUUSD Hanging Man Candle Technical Analysis
- MetaTrader Gold Trading Account Sign In
- How Can I Trade MetaTrader 4 Downward XAUUSD Channel in MT4 Platform Software?
- Types of Gold Traders
- Technical XAUUSD Indicators Used for Setting Stop Loss Orders
