Using Bollinger Bands to Measure Price Position

Summary

This note describes i-BandsPrice, a trend indicator based on the Bollinger Bands method. Its histogram represents price position relative to the bands: values beyond the stated thresholds of -25 and +25 indicate that price has moved beyond the lower or upper band, respectively. The note attributes the indicator to Talex and says it was first implemented in MQL4 and published in 2008.

The document offers a basic interpretation, not a trading system: it gives no entry or exit rules beyond identifying band crossings, and it reports no backtest or performance evidence. A band crossing alone does not establish whether price will continue in that direction or reverse. The note also provides no details about parameter settings or how the histogram is calculated, so readers cannot fully assess the signal or reproduce it from this description alone.

Key ideas

• The indicator represents price position relative to Bollinger Bands as a histogram.
• A reading below -25 or above +25 denotes price beyond the lower or upper band, respectively.
• The note describes an indicator interpretation rather than a complete trading strategy.
• No performance evidence or detailed calculation method is provided.

Tags

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