![]() It is all about the relationship between price and the Upper and Lower Bands. Calculation %B = (Current Price - Lower Band) / (Upper Band - Lower Band) The basics The creator of Bollinger Bands (BB), John Bollinger, introduced %B in 2010 almost 3 decades after the introduction of his Bollinger Bands. ![]() %B can be useful in identifying trends and trading signals. What the %B indicator does is quantify or display where price is in relation to the bands. The Upper and Lower Bands are typically 2 standard deviations above and below the SMA (Middle Line). The Middle Line is typically a 20 Day Simple Moving Average. Bollinger Bands are a volatility indicator which creates a band of three lines which are plotted in relation to a security's price. Bollinger Bands %B or Percent Bandwidth (%B) is an indicator derived from the standard Bollinger Bands (BB) indicator.
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