Volatility Band Percent - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resources - MetaTrader 5 Resources

Excerpted from the May 2010 issue of Futures Magazine: Fixing Bollinger Bands by David Rooker.

Popularly known as the Bollinger Bands after they were named by John Bollinger, the Bollinger Bands are simply a chart of multiples of the standard deviation (above and below) of price from its simple moving average (SMA). By using standard deviation, we should reasonably expect that the distribution of prices around the mean should conform to or be close to statistical normality.

Unfortunately, this was not the case with Bollinger Bands, so people started looking for solutions to the problem. Based on the observation of Bollinger Bands, here are some questions:

This is the version proposed by David Rooke as a solution to the above problem, but expressed in percentage (instead of plotting it on the main chart it is a separate window indicator showing the price's percentage position in the swing bands).

Attachment download

📎 volatile_bands_percent.mq5 (11.73 KB)

Source: MQL5 #20596