Filters: Bollinger Bands

Bollinger Band filters are calculated using exponential moving averages.

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Values are compared to Bollinger Bands at 1.0 standard deviation above and below the selected moving average. For example:

• a reading of 250 indicates that closing price is at the 2.5 STD upper band;
• a reading of zero indicates that closing price is at the moving average; and
• a reading of -100 indicates that closing price is at the 1.0 STD lower band.

Signals

• Extremely high readings (eg. Minimum 250) indicate high volatility and possible sell opportunities.
• Readings above the moving average (eg. Minimum 100) indicate that price is in an up-trend.
• Extremely low readings (eg. Maximum -250) indicate high volatility and possible buy opportunities.
  

To Set the Bollinger Bands filter:

1. Click the Bollinger Bands check box
2. Enter a Minimum or Maximum value
   Minimum = closing price is greater than (or equal to) the value entered
   Maximum = closing price is less than (or equal to) the value entered 
3. Click on Submit at the top/bottom of the page.

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