Bollinger Band Difference (BDIF)

The Bollinger Band Difference represents the width or the distance between the upper and lower Bollinger Band lines.

This study can be used to measure the volatility (relative ranges) between the highs and the lows. The trader or analyst is looking for an increase in range or a decline.

An increase in range signals the outbreak of the market in one direction at the beginning of a trend. If the increase continues this is usually a sign for a trend. A decrease indicates in most cases a consolidation area with very little price action.

For additional information, see http://www.bollingerbands.com/

Bollinger Band Difference Parameters

Parameter	Description
Display	Opens sub-window to set parameters • Color = Line color. • Weight = Line thickness. • Display = Line style: line or histogram. • ShareScale = Determines whether sharing of the vertical scales between studies is accepted. Auto = System determine whether sharing is feasible. On = Scale is shared regardless of the functions and studies displayed. Off = Scale is not shared. ShareScale must be On if study is overlaid on a study with multiple outputs.
MarkIt	Opens Specify Conditions window.
Type	Moving average calculation. Values: • Simple • Smoothed • Exponential • Weighted • Centered • Median • Trix • Exponential Hull
Period	Number of bars in the lookback range.
Price	Price used to calculate study values.
Std Dev	Multiplier used to calculate upper and lower bands.
OB/OS	Opens sub-window with overbought and oversold parameters: • Color = Select a color for the line. • Weight = Choose a thickness for the indicator. • Type = Choose fixed or dynamic. Fixed = uses Level as a fixed OB/OS value. Dynamic = uses Standard Deviation and Lookback for a dynamic OB/OS value:. OB: MA(@,Sim,lookback) + factor * STDDEV(@,lookback) OS: MA(@,Sim,lookback) - factor * STDDEV(@,lookback) where @ is the study • Std Dev = Multiplier used to calculate high and low. • Lookback = Number of bars to compare to the current bar. • Level = Percentage of average OB/OS used to calculate predictor Ob/OS levels. • Display = Click this check box to display the component. • Style = Choose a line style.