The standard Bollinger Bands indicator is calculated only on the basis of 7 price constants and a simple Moving Average (SMA). This modification allows calculating the indicator on the basis of any combination of 4 basic prices: Close, Open, High and Low.
An additional convenience of the indicator is the possibility to select one of the six methods of averaging: simple (SMA), exponential (EMA), smoothed (SMMA), linear weighed (LWMA), double exponential (DEMA), triple exponential (TEMA).
- Period - the averaging period for calculation of the indicator;
- Shift - shift of the indicator relative to the price chart;
- Deviation - a standard deviation;
- Moving Average mode - the method of averaging: simple (Simple, SMA), exponential (Exponential, EMA), smoothed (Smoothed, SMMA), linear weighed (Linear Weighted, LWMA), double exponential (Double Exponential, DEMA) or triple exponential Moving Average (Triple Exponential, TEMA);
- Close - weight coefficient of CLOSE price for calculation of the individual price;
- Open - weight coefficient of OPEN price for calculation of the individual price;
- High - weight coefficient of HIGH price for calculation of the individual price;
- Low - weight coefficient of LOW price for calculation of the individual price.
The example 1. Calculate the indicator by OPEN price: Close=0, Open=1, High=0, Low=0.
The example 2. Calculate the indicator by WEIGHTED price: Close=2, Open=0, High=1, Low=1.
The example 3. Calculate the indicator by individual price constant: Close=6, Open=7, High=1, Low=3. Price=(6*Close + 7*Open + 1*High + 3*Low)/17.