Bollinger Bands

Bollinger Bands vary in distance from the average as a function of a stock’s volatility. You can use Bollinger Bands to judge the trending tendency of markets, using the distance between the upper and lower bands.

Here are some features of Bollinger Bands:

• Sharp moves tend to occur as volatility lessens.
• A move outside the bands calls for a continuation of the trend.
• Tops and bottoms made outside the bands followed by tops and bottoms made inside the bands indicate a trend reversal.
• A move originating at one band tends to go to the other band.

You can display or hide Bollinger Bands on your Chart. You can select the moving average period and number of deviations for the Bollinger Band. You can also select colors for Bollinger Bands.

To display/hide Bollinger Bands:

1. From the DTN.IQ Smart Bar, click on the Chart icon. 
2. Click on the toolbar Settings icon.

The Settings dialog box appears.

3. Select the Upper Studies Tab.
4. Click on the Bollinger Band Show checkbox to insert or remove the Ö.
5. Click on OK to save the setting and close the Settings dialog box.

To select the moving averages period for Bollinger Bands:

1. From the DTN.IQ Smart Bar, click on the Chart icon. 
2. Click on the toolbar Settings icon. 

The Settings dialog box appears.

3. Select the Upper Studies tab.
4. Click on the Bollinger Band Show checkbox to insert the Ö.
5. Use the up and down arrows to select the Moving Average Period.

Tip: The default moving average period is 20.

7. Click on OK to save the setting and close the Settings dialog box.

To select the number of deviations for Bollinger Bands:

1. From the DTN.IQ Smart Bar, click on the Chart icon. 
2. Click on the toolbar Settings icon. 

The Settings dialog box appears.

3. Select the Upper Studies tab.
4. Click on the Bollinger Band Show checkbox to insert the Ö.
5. In the Number of Deviations field, enter the number of deviations for Bollinger Bands.

Tip: The default number of deviations is 2.

6. Click on OK to save the setting and close the Settings dialog box.

To select Bollinger Band colors:

1. From the DTN.IQ Smart Bar, click on the Chart icon. 
2. Click on the toolbar Settings icon. 

The Settings dialog box appears.

3. Select the Upper Studies tab.
4. Click on the Bollinger Band Show checkbox to insert the Ö.
5. Click on the Bollinger Band color box.

The Color dialog box appears.

6. Click on a color.
7. Click on OK to close the Color dialog box.
8. Click on OK to save your selections and close the Settings dialog bo