Re: Normalizing Bollinger Bands

[Bob Fulks <bfulks@xxxxxxxxxxxx>]

At 3:58 PM -0700 8/12/01, John Clemens wrote:

>Two years ago there were some messages about that years Omega World and
>someone passed on some ideas that John Bollinger had discussed.  There were
>two techniques that I was interested in...normalizing Bollinger Bands, and
>normalizing Bollinger Band widths.  I could never get the formulas to verify
>in TS4 and I wonder if anyone has working versions of these and would pass
>them on to me.

Below is my code for the bands normalized to between 0 and 100. Set it to
plot as follows.

Plot1 - Bar High - Lt Gray
Plot2 - Bar Low  - Lt Gray
Plot3 - Line     - Dk Gray
Plot4 - Line     - Dk Gray

Set Scaling as "Screen" so that it plots in a subgraph.

The ELA is attached.

Bob Fulks


{***********************************************************

Name : Bollinger's %b Function

Notes: From "Smarter Trading" by Kaufman

Desc : Bollinger bands normalized to 0% to 100% with price
       bars rescaled to the bands.

By:    Bob Fulks

************************************************************}

Inputs: Length (9), PreBuy (0), PreSel (100) ;

Vars  : RH(0), RL(0) ;

Value1 = StdDev (Close, Length) * 2.0 ;

if (2 * Value1 <> 0) then
begin
   RH = 100 * ((H + Value1 - Average (Close, Length)) / (2 * Value1)) ;
   RL = 100 * ((L + Value1 - Average (Close, Length)) / (2 * Value1)) ;
end;

Plot1 (RH, "RH") ;
Plot2 (RL, "RL") ;
Plot3 (PreBuy, "PreBuy") ;
Plot4 (PreSel, "PreSel") ;

Attachment: Description: "PCT_B.ELA"

Attachment: Description: "%PCT_B.ELA"