【策略】Bollinger Bandwidth Indicator

Description:

The indicator measures the distance between the Bollinger Bands ® and providing it as a singular indicator, using the MetaTrader 5 techniques to simplify Bollinger calculations.

This new version designed with MetaTrader 5 takes the calculations of iBands and calls them to perform the calculations needed to get the difference between upper and lower bandwidths.

This version also comes with an attempt to provide a digits offset so that you can drop it on a 2 digit, 3 digit, 4, digit, or 5 digit and the resulting value should be correct.

The digits settings may need to be adjusted, all variants may not have been taken into consideration.  The code is available for you to modify.

Image:

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newdigital | 3 Sep 2013 at 10:12

http://www.tradeforextrading.com/index.php/bollinger-bandwidth-indicator]Bollinger Bandwidth Indicator[/url]

Developed by John Bollinger.

Bollinger Bandwidth indicator is derived from the original Bollinger indicator.

Bandwidth is a measure of the width of the Bollingers.

Bollinger Bandwidth Indicator

This is an oscillator indicator, based on the theory that price and volatility occurs in cycles.

Periods of high volatility is followed by periods of low volatility.

When volatility is high, bands are far apart, the bandwidth will also be wide apart.

When volatility is low, Bands are narrow and the bandwidth indicator will also not be narrow.

The blue line represents the highest Bandwidth value for a previous number of periods.

This line also identifies periods of high volatility

The red line represents the lowest Bandwidth value for a previous number of periods.

This line also identifies periods of low volatility (Bollinger Squeeze)

Technical Analysis of Bollinger Bandwidth indicator

Consolidation - Bollinger Squeeze

Bollinger Bandwidth is used to identify the Bollinger squeeze, which is a consolidation period of price, after which the price then breaks out in a particular direction.

Signals are generated when there is a price breakout indicated by the indicator starting to go up after touching the red line. When the bandwidth line starts to move up it signifies that volatility is rising as the price is breaking out.

However, the Bollinger Bandwidth is a directionless indicator and needs to be combined with another indicator such as the moving average to determine the direction of the trend/ Breakout.