Bollinger Band: Low

Abbreviation: BB Low
Category: Time Series

Input Parameters:

Name Range Default
Time Series Close
Periods Int >= 2 20
StndDev Multiplier Real > 0.0 2

 
Calculation:

Avg(X, n) – (mult * StndDev(X, n))

where
X = Time Series
n = Periods
mult = StndDev Multiplier

Avg represents Simple Moving Average
StndDev represents Standard Deviation

 
Discussion:

Provides a price band whose width varies with price volatility. Movement of price below this band is a warning of a possible downward trend. The sensitivity of this indicator varies widely depending upon the user’s choice of moving average and standard deviation multiplier.
 

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