## BB Trading for Amibroker (AFL)

Bollinger bands are a technical analysis tool invented by John Bollinger in the 1980s. Having evolved from the concept of trading bands, Bollinger bands can be used to measure the highness or lowness of the price relative to previous trades.

Bollinger bands consist of:

- a middle band being an N-period simple moving average (MA)
- an upper band at K times an N-period standard deviation above the middle band (MA + Kσ)
- a lower band at K times an N-period standard deviation below the middle band (MA − Kσ)

Typical values for N and K are 20 and 2, respectively. The default choice for the average is a simple moving average, but other types of averages can be employed as needed. Exponential moving averages are a common second choice. Usually the same period is used for both the middle band and the calculation of standard deviation.

Here is a screenshot of how the indicator looks:

Submitted by iknow_u2_2 almost 7 years ago

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## Formula

## 3 Comments

Thanks for heads up but pasties are not counted towards anything and are anonymous. Its for people to have a facility to share formulas with each other and on forums.

**3.**eurosiva

Its very useful indicator when combined with RSI, thanks for sharing.

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1.cnbondreA similar afl “Color Bollinger Band for Amibroker”, is available in Pastie though this one gives better signals.