Bollinger Bands B% Indicator
Last updated
Last updated
The Bollinger Bands B% indicator is a technical indicator that measures overbought and oversold conditions in the market. It is derived from the popular Bollinger Bands indicator and can be useful for binary options traders to identify potential reversal points in the market.
The Bollinger Bands B% indicator measures the position of the current market price in relation to the Bollinger Bands. It is calculated as the latest price minus the moving average, divided by the Bollinger Band width. A reading of more than 1 indicates an overbought market, while a reading of less than -1 indicates an oversold market.
Binary options traders can use the Bollinger Bands B% indicator to trade reversals. When the indicator moves above 1, it signals overbought conditions and potential for a bearish reversal. Traders can buy PUT options. When the indicator moves below 0, it signals oversold conditions and potential for a bullish reversal. Traders can buy CALL options.
Access Finteria Trader from your Account Menu or go to Finteria Trader straight
Switch to Candlestick chart
Click on f(x) button on top of your Candlestick chart and search for Bollinger Bands %B, then choose Bollinger Bands %B from the search list, Bollinger Bands %B will be applied to your chart immediately
The Bollinger Bands B% indicator is a useful tool for binary options traders to identify overbought and oversold market conditions. By combining it with Bollinger Bands, traders can gain more insights into potential price reversals and trade the short-term fluctuations in the market. Used correctly, the Bollinger Bands B% indicator can help improve trading accuracy and results.
