+ Bollinger Bands %B: MA selection, bar coloring, multi-timeframe, and alerts

The + Bollinger Bands %B indicator enhances the classic %B calculation with advanced smoothing options, multi-timeframe analysis, and visual aids to better track market volatility and momentum. It provides a highly customizable framework for identifying overbought or oversold conditions and trend strength through various moving average selections and bar coloring logic.

Usage

The indicator can be used to identify market extremes and trend direction. By observing the position of the %B line relative to its median (0.5), upper (1.0), and lower (0.0) bounds, traders can gauge market structure.

• Smoothing & Signals: Use the "Indicator Smoothing" option to replace the raw %B with a smoothed version (e.g., Jurik or Hull MA) to filter out noise. You can also enable a second signal line to identify crossovers for potential entry or exit points.
• Bar Coloring: Enable the "Bar Color" feature to paint chart candles based on market state. For example, candles may turn green when %B is between the median and upper bound, or red when between the median and lower bound.
• Multi-Timeframe (MTF): The "Timeframe Reference" setting allows you to display %B data or coloring logic from a higher timeframe (e.g., 4h) while trading on a lower timeframe (e.g., 1h), providing a broader perspective on trend bias.
• Volatility Bands: You can overlay Bollinger Bands or Donchian Channels directly within the indicator pane to see how the %B value interacts with price-based volatility extremes.

Details

The Bollinger Bands %B indicator traditionally calculates the relative position of price within its Bollinger Bands. This version expands on that by allowing the user to apply over 20 different types of moving averages to the %B output itself.

Available moving average types include:

• Standard options: SMA, EMA, WMA, VWMA.
• Advanced filters: Jurik (JMA), Kaufman (KAMA), Laguerre Filter, and Volatility-Adjusted (VAMA).
• Adaptive MAs: Fractal Adaptive (FRAMA) and Zero-Lag (ZLMA).

Settings

%B

• Bar Color: Toggles candle coloring on the main chart based on indicator logic.
• Indicator Smoothing: When enabled, the indicator uses a smoothed moving average instead of the raw %B.
• Period: The lookback period for the underlying Bollinger Bands calculation.
• Std Dev: The standard deviation multiplier for the bands.
• Color Reference: Determines the logic used for coloring (Range, Signal Line, or Channel extremes).
• Timeframe Reference: Selects the timeframe used for the color calculations.

Smoothed %B / Signal Line

• Type: Selects the moving average algorithm used for smoothing.
• Period: The lookback length for the moving average.
• Additional Inputs: Specific parameters for advanced MAs (e.g., Jurik Phase, ALMA Sigma).

Bollinger Bands & Donchian Channel

• Type: Choose between displaying Bollinger Bands or Donchian Channels in the indicator pane.
• Multiplier: Adjusts the width of the Bollinger Bands.
• Band Thickness: Controls the visual thickness of the bands.

FAQ

How do I use the multi-timeframe feature?

Select your desired timeframe from the "Timeframe Reference" dropdown in the %B settings group. The indicator and bar colors will then reflect the %B status of that specific timeframe regardless of your current chart interval.

What is the difference between "Range" and "Signal Line" coloring?

"Range" coloring is based on the %B value's position relative to fixed levels (0.5, 1.0, etc.), while "Signal Line" coloring is determined by whether the %B line is currently above or below its selected moving average signal.

How can I access + Bollinger Bands %B?

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