Measuring Price Distance from Bollinger Bands in Two Display Modes

Summary

The DBB oscillator represents price distance from Bollinger Bands as two lines. It offers two display modes: percentage distance and distance in price points. This lets users view the relationship to the bands in relative terms or as an absolute price difference.

Its configurable inputs are the Bollinger Band period, deviation, applied price, and display mode. These settings determine the band calculation and how the distance is presented. The description explains the indicator’s basic representation and controls, but does not specify the exact distance formula, provide interpretation rules, or show a trading strategy or performance evidence. It should therefore be treated as a visualization tool description rather than evidence that any particular signal is profitable.

Key ideas

• The indicator plots price distance from Bollinger Bands using two lines.
• Users can display the distance as a percentage or in price points.
• The calculation depends on the Bollinger Band period, deviation, and applied price.
• The description does not define signal thresholds or provide evidence of trading performance.

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