Trend Kanalı Bollinger Bands (tightend to 90%) - John Bollinger

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> > ----- Original Message -----
> > From: "Alberto Torchio" <atorchio@xxxxxxxxx>
> > To: "Realtraders" <realtraders@xxxxxxxxxxx>
> > Sent: Monday, October 23, 2000 2:27 AM
> > Subject: Simple question on Bollinger Bands
> >
> >
> > Dear Listmembers,
> >
> > I have been asked a simple question on Bollinger Bands and was unable to answer...
> > Could anyone tell me the number of standard deviations allowing to contain
> > within the bands 90% of price data?
> >
> > Alberto Torchio
> > Torino, Italy


> ----- Oorspronkelijk bericht -----
> Van: "Lionel Issen"
> Aan: <metastock@xxxxxxxxxxxxx>
> Verzonden: dinsdag 24 oktober 2000 4:23
> Onderwerp: Re: Simple question on Bollinger Bands
>
>
> I cant find my statistics book, but I think its close to 2 std dev.
> Lionel Issen
> lissen@xxxxxxxxx


----- Oorspronkelijk bericht -----
Van: "michael"
Aan: <metastock@xxxxxxxxxxxxx>
Verzonden: vrijdag 27 oktober 2000 15:22
Onderwerp: RE: Simple question on Bollinger Bands


I don't know how come there are so many opinions on this. 1.28155 is the standard deviation equivilant of 90%. If you plotted a 1.28155 standard deviation line above prices on a chart, 90% of the prices should theoretically fall below that line. If the market follows the bell curve then this would be true.

Since you are probably using a lower standard deviation line also, the bottom line says that 90% of all values will be above the lower line. That leaves two 10% tails. So in fact 80% of the values should occur in between the 2 lines.

If you want to know the standard deviation that is equivilant to 90%, I gaurantee it is 1.281.

If you want the area between the 2 lines to equal 90% then you need the standard deviation that correlates with 95%. This will leave 5% tails on the normal distribution curve. The standard deviation that correlates to 95% probability is 1.645.

Michael


-----Original Message-----
From: owner-metastock@xxxxxxxxxxxxx
[mailtowner-metastock@xxxxxxxxxxxxx]On Behalf Of A.J. Maas
Sent: Thursday, October 26, 2000 10:12 PM
To: Metastock-List
Subject: Re: Simple question on Bollinger Bands


The mean=middle=0
and
100%=da width difference between "+1 stdev"{+100%} and "-1 stdev"{-100%}
thus
100%{2*1}=2*stdev(da,pds) {width is then mean + 1*stdev up +1*stdev down}
and
50%{2*0.5}=1*stdev(da,pds)
then
90%{2*0.9}=1.8*stdev(da,pds)

Regards,
Ton Maas
ms-irb@xxxxxxxxxxxxxxxx
Dismiss the ".nospam" bit (including the dot) when replying.
Homepage http://home.planet.nl/~anthmaas


Re: Simple question on Bollinger Bands

To: <metastock@xxxxxxxxxxxxx>
Subject: Re: Simple question on Bollinger Bands
From: "A.J. Maas" <anthmaas@xxxxxxxxx>
Date: Sat, 28 Oct 2000 03:34:40 +0100
Organization: Ms-IRB
References: <NEBBIBJHKLGKBLOGAGNJIEHECEAA.mslist@xxxxxxxxxxxxxxxx>
Reply-To: metastock@xxxxxxxxxxxxx
Sender: owner-metastock@xxxxxxxxxxxxx

The Law According to Bartjens:​

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Bollinger Bands (tightend to 90%) - John Bollinger
{First, catching the BB's 100% of Price movement :}
UpperBand:= Mov( C,20,S ) + 1*( 2 * ( Std( C,20 ) ) );
MiddleBand:=Mov( C,20,S );
LowerBand:= Mov( C,20,S ) - 1*( 2 * ( Std( C,20 ) ) );
BandsWidth:= UpperBand - LowerBand;
{Second, now for catching 90% of Price movement}
BB100:= 1*BandsWidth;
BB90:= 0.9*BandsWidth;
{broken up, this then is equal to :}
sUpperBand:= mov( C,20,S ) + 0.9*( 2 * ( std( C,20 ) ) );
sMiddleBand:=mov( C,20,S );
sLowerBand:= mov( C,20,S ) - 0.9*( 2 * ( std( C,20 ) ) );
sBandsWidth:= sUpperBand - sLowerBand;
sUpperBand;
sMiddleBand;
sLowerBand;
sBandsWidth;
{Third, now to proove all is right, plot the BandsWidth's BB100%}
BB100;
{and plot the BB90%}
BB90;
{and plot the final difference outcome in $}
BB100-BB90;
{and plot the final difference outcome in %}
(BB100-BB90)/(BB100*0.01)​