"Bollinger on Bands" suggests a relatively method of analysis by applying the to an indicator.
Here's one of the indicators, Index.
Index is an indicator of overbuying and overselling by reflecting the of transactions.
"Bollinger on Bands" suggests using the to create relative top and bottom lines for various indicators, such as Index.
Original Index is considered to be over-purchased if it is more than 80% and over-selling if it is less than 20%.
But if you put a bolinger band on it, you can set the standard for higher or lower over-selling and over-selling in a sustained , market.
This script uses the following values as the default values as recommended by "Bollinger on Bands".
Index for 10 days.
a of forty days
standard deviation of 2
The above values are suitable for most stocks and markets, but sometimes there is too much or too little data inside the .
It is recommended to modify each value little by little to adjust 85% to 90% of the total data to fit inside the .
If the value is higher than the top line, it is considered over-purchased, and a red background color appears.
If the bottom line is crossed down, it is considered over-sold and the green background color appears.