Smoothing Bollinger Bands Independently After Calculation

Summary

This note describes a variation on Bollinger Bands in which the upper and lower bands are smoothed separately after the standard deviation calculation. Applying smoothing at that stage can produce smoother boundaries while allowing each side to respond independently: adjusting the upper band need not alter the lower band, and vice versa.

The document explains the construction concept but does not specify a smoothing method, parameter values, or rules for generating trades from the bands. It offers no charts, test results, or comparison with conventional Bollinger Bands, so it does not establish whether the modification improves signals or performance. Traders evaluating the idea would need to define the smoothing procedure and test its effect across instruments and market conditions.

Key ideas

• The method smooths each Bollinger Band after the standard deviation calculation.
• The upper and lower bands can be smoothed independently.
• The note does not specify a smoothing function, parameter settings, or trading rules.
• No test results are provided to establish whether the variation improves performance.

Tags

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