From e57e1e30697f03ae097ed26e446906babaf46af3 Mon Sep 17 00:00:00 2001 From: moshferatu Date: Fri, 27 Sep 2024 05:39:59 -0700 Subject: [PATCH] Add description to %B indicator documentation --- indicators/%b/README.md | 16 ++++++++++++++++ 1 file changed, 16 insertions(+) diff --git a/indicators/%b/README.md b/indicators/%b/README.md index 06521d8..a630684 100644 --- a/indicators/%b/README.md +++ b/indicators/%b/README.md @@ -1,5 +1,21 @@ # %B +The %B indicator is based on the position of price relative to the Bollinger Bands. + +It is calculated as follows: + +``` +%B = (Price - Lower Band) / (Upper Band - Lower Band) +``` + +Example values and positions relative to Bollinger Bands: + +* **%B = 1**: The price is exactly at the upper band. +* **%B = 0**: The price is exactly at the lower band. +* **%B = 0.5**: The price is at the midpoint between the bands (the moving average). +* **%B > 1**: The price is above the upper band. +* **%B < 0**: The price is below the lower band. + ## Strategies The [%B strategy](https://moshferatu.dev/moshferatu/ninjatrader/src/branch/main/strategies/%25b) taken from [*High Probability ETF Trading*](https://moshferatu.dev/moshferatu/high-probability-etf-trading) (2009) by Larry Connors is based on this indicator.