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Bollinger Bandwidth Average Over Time Period Rate this Topic:
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neil.galloway
Posted : Thursday, April 18, 2013 2:08:41 PM
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Joined: 5/3/2011
Posts: 7

I'm trying to find stocks that have been consolidating over a period of time (in my case it is a few days and I'm using 15 minute candles) and have then broke out in a direction.  Tried to upload screenshot, but couldn't figure it out.  I was looking at NIHD over the period of April 11th to end of April 17th (2013).  The BBwidth was getting lower and lower so thought an average of that would be useful.

I can add the current BBandW value as a column to my stock lists but it is just the most recent value, but it doesn't really indicate the last period of time.  

I thought a method would be to find something with a low BBandW over say the last 60 candles. 

i.e. This is invalid syntax in TC2000 but to illustrate my point

(BBandW(50,2) + BBandW(50,2).1 + ... + BBandW(50,2).n)/n

This would give me the average and I could then sort/filter for consolidating stocks and add back in my breakout criteria.

Or perhaps there is a better way...by just modifying criteria for the BBW itself...I couldn't figure it out.

 

Bruce_L
Posted : Thursday, April 18, 2013 2:47:25 PM


Worden Trainer

Joined: 10/7/2004
Posts: 65,138

You can add a moving average to a Bollinger Bandwidth indicator that is already on your chart. Just select Add Indicator, choose Moving Average from the list and select the Bollinger Bandwidth indicator when prompted for a parent indicator for the moving average.

You can then click on the moving average and select Show values in WatchList to get the value of the moving average displayed as a WatchList Column.

Adding & Editing WatchList Columns

Once you have both the Bollinger Bandwidth and its moving average plotted, you could also create Conditions for the Bollinger Bandwidth being above, below or crossing through its moving average by clicking on the Bollinger Bandwidth indicator and selecting Create Scan Condition.

Create Scan Conditions

You could even click on Bollinger Bandwidth and select Create Scan Condition for a New Low if you wanted to find out if it was at its narrowest point during a specified period.



-Bruce
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