I am currently using Bollinger Bands, period 40, width 20 in the middle window of a chart with Wilder's RSI to help in determining highs and lows of stocks.  I would like to use Bollinger's %b derived by the formula: ((Indicator - Indicator Lower Band)/(Indicator Upper Band - Indicator Lower Band)).  Normally, when Bollinger Bands are used in conjunction with closing prices, the formula for %b is  relatively straight forward ((C - Lower Band)/(Upper Band - Lower Band)) and the formula for the bands is well known in TC2000.  Could you tell me the algorithm you use for plotting the upper and lower bands for Bollinger Bands on  indicators such as RSI or other volume oscillators?  One of particular interest is 21-period Intraday Intensity that you discussed in your discussion forum June 15, 2011.   I can plot the indicator in the custom template and plot the Bollinger Band with it, but I don't know how to find the value of the bands to determine %b.

Thanks for your assistance with this topic.

Jerry Plante 

In the general sense, you can just substitute bars ago versions of the formulas into the Bollinger Band structure given in the Modelling Bollinger Bands (& Standard Deviation) in a TC PCF topic to create formulas for these values. In most cases, you would need to manually expand the moving averages as well.

In a practical sense, you are not going to be able to do this for either Wilder's RSI or Intraday Intensity because the resulting formulas would just be way too long because the formulas for Wilder's RSI ind Intraday Intensity are already fairly long on their own.

In TC2000 version 12.4, you could use the new Change Data Source feature to change the data source of the Bollinger Bands %B indicator to something besides price.

Change Data Source (3:38)

You really can't do this in TC2000 version 7 however as it neither has a built in Bollinger Bands %B indicator or a Change Data Source feature.

All is not lost however because you can still add Bollinger Bands to both RSI and Custom Indicators. You can then do a Channel Sort on the Bollinger Band indicator.

Sort using envelopes, regression channels and Bollinger bands

It will not return the exact same results as Bollinger Bands %B, but the idea is similar. Instead of being 0 at the bottom of the bands, 50 at the middle and 100 at the top, you would get -100 at the bottom, 0 at the middle and 100 at the top.