Bollinger Bands %

The Bollinger Bands % indicator maps price relative to its Bollinger envelope onto a normalized oscillator scale to identify momentum transitions and volatility-aware overbought or oversold conditions.

Usage

The Usage section describes how the script can be used to identify trend strength and potential exhaustion points. Traders can utilize the normalized scale (typically 0–100) to gauge where price sits relative to its standard deviation bands.

• Trend Following: Values holding above the 55 threshold indicate bullish strength toward the upper band, while values below 45 indicate bearish momentum toward the lower band.
• Mean Reversion: The indicator features shaded extreme zones (above 110 or below 10). When the oscillator enters these regions, it suggests price is stretched significantly beyond its historical volatility, highlighting potential snap-back opportunities.
• Visual Signals: The script includes optional candle coloring and triangle markers to highlight specific crossovers and trend shifts directly on the chart.

Details

This tool functions by first calculating a central baseline using a user-selected moving average and then determining the volatility range via standard deviation. Unlike standard Bollinger Bands that overlay the price, this tool calculates the percentage rank of the current price within those bands: 100 * (Price - Lower Band) / (Upper Band - Lower Band) This normalization allows for a consistent comparison of price action across different symbols and timeframes, regardless of absolute price value or varying volatility levels.

Settings

General Settings

• Base Moving Avg Type: Select from 12 different MA types (SMA, EMA, DEMA, TEMA, HMA, ALMA, EHMA, THMA, RMA, WMA, VWMA, T3, LSMA) to determine the baseline responsiveness.
• Use Heikin-Ashi: Toggle to use Heikin-Ashi source data for smoother calculations.
• Source: The price input used for calculations (e.g., Close, Open, High, HLC3).
• Base Length: The lookback period for the moving average and standard deviation.
• Long / Short Thresholds: Defines the levels (default 55/45) used to trigger trend transition signals and candle coloring.

Visuals

• Color Mode: Choose from various color themes (Alpha, MultiEdge, TradingSuite, etc.) to match your workspace aesthetics.
• Color Transparency: Adjust the opacity of the shaded zones and fills.

FAQ

How do I interpret the 55 and 45 levels?

These levels act as momentum triggers. Moving above 55 suggests the price is pushing toward the upper volatility band, while falling below 45 suggests it is moving toward the lower band.

Can the indicator go above 100 or below 0?

Yes. Because the normalization is based on standard deviation bands, price can move outside the bands during extreme volatility, resulting in readings greater than 100 or less than 0.

How can I access this tool?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.