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Rainbow Trader
Posted : Thursday, July 9, 2015 10:39:03 AM
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Joined: 7/13/2014
Posts: 29

How do I put into formula the difference of the high of the 3 std dev of bollinger band to the low of the 3 std dev bollinger band? 

Bruce_L
Posted : Thursday, July 9, 2015 11:07:40 AM


Worden Trainer

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

The following is based on Bollinger Bands 20, 3.00 and produces the value of the top Bollinger Band minus the bottom Bollinger Band. Which ends up just being 2 times the number of standard devations specified in the Bollinger Band (so 6 in this case).

6 * SQR(ABS(C ^ 2 + C1 ^ 2 + C2 ^ 2 + C3 ^ 2 + C4 ^ 2 + C5 ^ 2 + C6 ^ 2 + C7 ^ 2 + C8 ^ 2 + C9 ^ 2 + C10 ^ 2 + C11 ^ 2 + C12 ^ 2 + C13 ^ 2 + C14 ^ 2 + C15 ^ 2 + C16 ^ 2 + C17 ^ 2 + C18 ^ 2 + C19 ^ 2 - 20 * AVGC20 ^ 2) / 20)

Modelling Bollinger Bands (& Standard Deviation) in a TC PCF



-Bruce
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Rainbow Trader
Posted : Thursday, July 9, 2015 12:32:47 PM
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Joined: 7/13/2014
Posts: 29

Hi bruce I am trying to get the difference of the upper and lower 3 st dev bollinger band.

 

How do I test it to know if the values are correct? 

 

Rainbow Trader
Posted : Thursday, July 9, 2015 12:39:20 PM
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Joined: 7/13/2014
Posts: 29

Hi Bruce, 

If the value of the upper bollinger band 3 st dev is 119.20 then the lower bollinger band 3 st dev is 118.70. The difference is .50. How do I make this a formula?  

Rainbow Trader
Posted : Thursday, July 9, 2015 12:39:58 PM
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Joined: 7/13/2014
Posts: 29

What I mean is how do I make a formula for that? 

Bruce_L
Posted : Thursday, July 9, 2015 1:05:55 PM


Worden Trainer

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

You should just need to change all instances of 20 to 30 and add 10 terms.

6 * SQR(ABS(C ^ 2 + C1 ^ 2 + C2 ^ 2 + C3 ^ 2 + C4 ^ 2 + C5 ^ 2 + C6 ^ 2 + C7 ^ 2 + C8 ^ 2 + C9 ^ 2 + C10 ^ 2 + C11 ^ 2 + C12 ^ 2 + C13 ^ 2 + C14 ^ 2 + C15 ^ 2 + C16 ^ 2 + C17 ^ 2 + C18 ^ 2 + C19 ^ 2 + C20 ^ 2 + C21 ^2 + C22 ^ 2 + C23 ^ 2 + C24 ^ 2 + C25 ^ 2 + C26 ^ 2 + C27 ^ 2 + C28 ^ 2 + C29 ^ 2 - 30 * AVGC30 ^ 2) / 30)



-Bruce
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