Measuring Changes in Bollinger Bandwidth with a Delta Oscillator

Summary

The Bollinger Bandwidth Delta oscillator measures how the width of Bollinger Bands has changed relative to a value from a chosen number of bars earlier. It uses a Bollinger period and deviation, a delta lookback period, an applied price, and an option to display the result as a percentage. The width is derived from the moving average and standard deviation of the applied price.

The indicator can express the change in percentage terms relative to the earlier bandwidth, or in price points after scaling by the instrument’s point size. This makes it a measure of changing band width, which can help describe shifts in price dispersion. The document defines the calculation but does not provide trading signals, thresholds, empirical results, or guidance on interpreting readings. It therefore explains an indicator construction rather than demonstrating a complete strategy or predictive advantage.

Key ideas

• The oscillator compares current Bollinger Bandwidth with bandwidth from a prior lookback point.
• Its band width uses the moving average and standard deviation of the selected price series.
• The change can be expressed as a percentage or in instrument points.
• The document specifies the calculation but does not give signal rules or performance evidence.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.