BBF (Bollinger bands flat)
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Bollinger bands flat indicator provides the same data as Bollinger bands but is displayed in a separate field and thus makes it easy to determine whether prices are in or out of the band.
This indicator consists of:
Zero line – shows zero on the chart for user convenience;
Positive deviation – shows the value of the positive standard deviation, shifted N times up;
Negative deviation – shows the value of the negative standard deviation shifted N times down;
Delta – shows the difference between the current value and the value of the moving average at a given point.
As can be understood from the above, only three components of the indicator are calculated:
Delta = ClosePrice - MA, where
ClosePrice is the current value of the Close price,
MA - the value of the moving average.
Positive deviation = A * D, where
A - deviation parameter value,
D - dispersion relative to the moving average,
Negative deviation = (-1) __A * D
Sources prices for MA – the type of price at which the indicator will be calculated for the selected period. Available values: Low, Open, High, Close, Typical, Medium, Weighted;
Type of moving average – type of moving average calculation. Available values: Simple, Exponential, Modified, Linear weighted;
Period – the number of periods involved in the indicator calculation;
Deviation – the number of standard deviations;
Shift – the number of indicator values by which there will be a shift up or down by the number of standard deviations.
This looks as follows on the chart:
