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Bollinger Bands Formula (Chart Controls)

The Bollinger Bands formula calculates the standard deviation above and below a simple moving average of the data. Since standard deviation is a measure of volatility, a large standard deviation indicates a volatile market, and a smaller standard deviation indicates a calmer market.

Sample plot of the Bollinger Bands

Syntax

Chart.DataManipulator.FinancialFormula(
    FinancialFormula.BollingerBands,
    "Period,StdDev",
    "Price",
    "UpperBand,LowerBand")

Parameters

This formula takes two required parameters.

Period

Period for calculating the moving average for the Bollinger Bands.

StdDev

The number of standard deviations for calculating the upper and lower bands.

Input Values

This formula takes one input Y value.

Price

The price for which the Bollinger Bands are calculated.

Output Value

This formula outputs two Y values.

UpperBand

Upper Bollinger Band.

LowerBand

Lower Bollinger Band.

The Range chart type is a convenient chart type to display the formula output. You can also use the Line chart type to display the upper envelope and lower envelope as two data series.

The following example takes input from Series1's second Y value (Series1:Y2) and outputs the Bollinger Bands on Series2 (Series2:Y, Series2:Y2). It specifies a period of 20 days and takes two standard deviations.

Chart1.DataManipulator.FinancialFormula (FinancialFormula.BollingerBands, "20,2", "Series1:Y2", "Series2:Y,Series2:Y2");
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