Bollinger Bands

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The Bollinger Bands function was developed by John Bollinger. It computes a pair of data values based on the calculation of the moving average of the input value series.

Each value is derived by calculating a specified number of standard deviations based on the calculation of the moving average of the selected input value series. Applications of Bollinger Bands include the measurement of stock price volatility.

BOLLINGERUPPER and BOLLINGERLOWER Bands
BOLLINGERUPPER and BOLLINGERLOWER Bands

Note
To use an exponential moving average instead of the simple one, see Moving Average Envelopes.

1. Syntax

Upper Bollinger Band:

BOLLINGERUPPER(d0,s0,s1,Alignment)

Lower Bollinger Band:

BOLLINGERLOWER(d0,s0,s1,Alignment)

Using the Upper Bollinger Band
Using the Upper Bollinger Band

2. Input

The BOLLINGERUPPER and BOLLINGERLOWER functions require the following input:

  • d0 - The set of data values to calculate a moving average and then to calculate a standard deviation based on the moving average.

3. Parameters

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 determine the values of the Upper and Lower Bollinger Bands in relation to the simple moving average. Default value is 2.
  • Alignment (Optional) – Hierarchy placeholder to be used as the alignment axis.

4. Output

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.

5. See also

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