BB Trend Indicator
BBTrend is a relatively new indicator developed by John Bollinger to work with Bollinger Bands™. It is one of only a few indicators that can signal both strength and direction making it a very valuable tool for traders.
The calculations are fairly simple. The default periods of 20 and 50 are shown, but these can be changed through the parameters.
Lower = MathAbs(lowerBB(20) - lowerBB(50))
Upper = MathAbs(upperBB(20) - upperBB(50))
BBTrend = (lower - upper) / middleBB(20)
- Bullish trend = BBTrend above zero
- Bearish trend = BBTrend below zero
The degree above or below zero determines the strength or momentum behind the trend.
- Shorter Bands Period – the shorter period for the Bollinger Bands used in the calculation.
- Longer Bands Period – the longer period for the Bollinger Bands used in the calculation.
- iBands Shift – “shift” used by both the longer and shorter Bollinger Bands (iBands) calculations.
- iBands Deviation – “deviation” used by both the longer and shorter Bollinger Bands (iBands) calculations.