The Bollinger Bands function was developed by John Bollinger. It computes a pair of data bands that envelope the moving average of the input value series.
Each data band is positioned a specified number of standard deviations away from the moving average of the selected input value series. Applications of Bollinger Bands include the measurement of stock price volatility.
Upper Bollinger Band:
Lower Bollinger Band:
The BOLLINGERUPPER and BOLLINGERLOWER functions require the following input to calculate the moving average of the input value series:
- d0 - The set of data values for which the Bollinger Bands is calculated.
The BOLLINGERUPPER and BOLLINGERLOWER functions require the following parameters:
- s0 - Period - The number of time periods to use in the calculation. Default value is 10.
- s1 - Standard Deviation Shift - The number of standard deviations that is used to shift the bands away from the simple moving average. Default value is 2.
- Alignment (Optional) – Hierarchy placeholder to be used as the alignment axis.
The BOLLINGERUPPER function generates the following output:
- Upper Bollinger Band - The Upper Bollinger Band result set.
The BOLLINGERLOWER function generates the following output:
- Lower Bollinger Band - The Lower Bollinger Band result set.