Bollinger Bands are based on a standard Moving Average. The actual band lines are offset by a positive and negative standard deviation value from the central moving average value, to provide upper and lower bands.
Bollinger Bands were created by John Bollinger, CFA, CMT in the early 80’s.
To add the tool to your chart, select the tool from the Averages tool group, and left-click on the chart or indicator on which you wish to add the tool. Optuma will then draw the tool using the default settings.
Scripting Functions: BB()
Actions & Properties
Copy Data to Clipboard: Will copy the tool’s values to the clipboard which can then be inserted into a spreadsheet, for example, allowing for further analysis.
Add Technical Alert: When selected, a Technical Alert will be created for the selected security.
Add to Toolbar: Adds the selected tool to your custom toolbar.
Apply Settings to All: When multiple Bollinger Bands tools have been applied to a chart, page or workbook, this action can be used to apply the settings of the one selected to other instances of the tool. This is a great time saver if an adjustment is made to the tool - such as line colour - as this allows all the other Bollinger Bands tools in the chart, page or entire workbook to be updated instantly.
Copy Tool: Allows you to copy the selected tool, which can then be pasted onto a different chart window.
Move to Back: If the tool is displaying in front of other tools or indicators clicking this action will move the tool view to the background.
Move to Front: If the tool is displaying behind other tools or indicators on the chart, clicking this action will bring the tool to the forefront.
Restore Default Settings: Click this action if you have adjusted the default settings of the tool, and wish to return to the standard properties originally installed with Optuma.
Save Settings as Default: If you have adjusted any of the tool’s properties (colour, for example) you can save the adjustments as your new default setting. Each time you apply a new Bollinger Bands to a chart, the tool will display using the new settings.
Delete: Deletes the tool from the chart.
Tool Name: Allows you to adjust the name of the tool, as it’s displayed in the Structure Panel.
Bars: The number of bars that are averaged (e.g. if 5 then the values for the last 5 bars are added and divided by 5).
Calc Style: This option is used to set the type of calculation for the Bollinger Bands. The calculation options are Exponential, Simple, Weighted, Smoothed, Modified or McGinley.
Calc Using: This option is used to determine which components of the data are used in calculating the Bollinger Band. You can choose from, Open Price, Closed Price, High Price, Low Price, HL (High + Low / 2), HLC (High + Low + Close / 3), OHLC (Open + High + Low + Close / 4), OC (Open + Close / 2).
Standard Deviation: Sets the number standard deviations used in the calculation of the Upper and Lower bands.
Upper Plot: Expands to display the line properties of the upper band. The following properties can be adjusted:
- Plot Style - Adjusts the display style of the Upper Band of the Bollinger Band tool. There are 6 options available: Line, Dot, Histogram, Step, Shaded, Shaded Step.
- Line Style - When Line is selected as the Plot Style, the Line Style property allows you to adjust the type of line displayed. There are 8 options available: Solid, Dots, Dash, Dash Dots, Long Dash, Long Dash Dot, Long Dash Dot Dot, Stippled.
- Line Width - Allows you to adjust the width of the Upper Band of the Bollinger Band tool. Moving the slider bar to the right increases the thickness of the line.
- Line Colour - Allows you to adjust the colour of the Upper Band of the Bollinger Band tool.
- Visible - Un-tick this checkbox to hide the Upper Band of the Bollinger Band from the chart.
Average Plot: Expands to display the line properties of the Average (middle) line. The properties are identical to those listed in the Upper Plot.
Lower Plot: Expands to display the line properties of the Lower band. The properties are identical to those listed in the Upper Plot.
Offset: Moves the tool forward or backwards in time. The offset is measured in bars, so a value of 2 will push the tool forward 2 bars and -2 will move the tool back 2 bars.
Tool Transparency: Use this slider bar to adjust the transparency of the tool. Moving the slider to the left will increase the transparency of the tool.
Visible: Un-tick this checkbox to hide the tool from the chart.
Show In Price Scale: When selected the current upper and lower band values will be displayed in the Price Scale.
For more information on how to use the Bollinger Bands, click here.