Bollinger % B

The Bollinger % B tool was created by John Bollinger, CFA, CMT in the early 80’s. It is similar to the Stochastic tool but the range is calculated from the Bollinger Bands rather than actual price. Whereas Stochastics will always oscillate in a range between zero and 100 since price can never penetrate above the price range (else it will increase the price range itself). However, price often exceeds the Bollinger Bands so the Bollinger % B can move above 1 and below zero. There are six basic relationship levels:

This is a companion discussion topic for the original entry at