Real author:

Mohsen khashei

This is Bollinger Bands %b indicator for MetaTrader 5.

It is all about the relationship between price and the Upper and Lower Bands. There are six basic relationships that can be quantified.

In descending order from the Upper Band:

1. %B Above 1 = Price is Above the Upper Band;
2. %B Equal to 1 = Price is at the Upper Band;
3. %B Above .50 = Price is Above the Middle Line;
4. %B Below .50 = Price is Below the Middle Line;
5. %B Equal to 0 = Price is at the Lower Band;
6. %B Below 0 = Price is Below the Lower Band.

Generally speaking .80 and .20 are also relevant levels:

1. %B Above .80 = Price is Nearing the Upper Band;
2. %B Below .20 = Price is Nearing the Lower Band.