The Bollinger Bandwidth Delta oscillator is a handy tool that gives you insights into the relative width of Bollinger Bands over a set timeframe. If you're looking to enhance your trading strategy, understanding this indicator can be a game changer.
Here’s a quick rundown of the five inputs you’ll encounter:
- BB Period: This is the calculation period for the Bollinger Bands.
- BB Deviation: This value represents the deviation used in the Bollinger Bands.
- Delta Period: The indicator's calculation period.
- Applied Price: The price that you want the indicator to reference.
- Show Data in Percentage: Choose whether to display the calculated correlation of the bands' width in percentage (Yes/No).
Calculation:
- In Percentage:
BBD = 100.0 * (Bandwidth - DeltaBandwidth) / DeltaBandwidth
- In Points:
BBD = (Bandwidth - DeltaBandwidth) / Points
Where:
Bandwidth = 2.0 * BB Deviation * StdDev / MA DeltaBandwidth = Bandwidth Delta value 'period' bars ago StdDev = Standard Deviation (Applied Price, BB Period) MA = SMA (Applied Price, BB Period)
Fig. 1. Bollinger Bandwidth Delta in Points
Fig. 2. Bollinger Bandwidth Delta in Percentage
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