The famous Bollinger Bands indicator attempts to show if a market is overbought or oversold. It was designed for the stock markets and is also frequently used for technical analysis of the forex market.
Bollinger Bands Calculation Formula
The Bollinger Bands indicator is composed of three lines plotted on the price chart. The central line is a simple moving average, normally set to twenty periods. The outer bands are then created by adding and subtracting standard deviations from the moving average. The default for the Bollinger Bands is two standard deviations.
JagzFX Bollinger Band PIN Modes
For each timeframe (M1, M5, etc.), you can chose the Mode. These are as follows:
Disabled(-) the PIN will ignore this timeframe.
Breakout(B) the candle has closed outside the bands. Closing above the upper band = buy. Closing below the lower band = sell.
Reverse: Cross(C) the current candle has closed inside the bands, and the preceding candle closed outside the bands. Crossing from outside the upper band to inside = sell. Crossing from outside the lower band to the inside = buy.
Reverse: Touch(T) the signal is based on the last band touched and will remain ‘locked’ until the opposite band is touched. Touching the upper band = sell. Touching the lower band = buy.
Other settings for this PIN are common to my other MTF PINs and should be self explanatory.