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Percent B (%B)

Description

The Percent B indicator reflects closing price as a percentage of the lower and upper Bollinger Bands®.

Chart 1: Percent B (%B)
Chart 2: Percent B (%B)
  • If the closing price is equal to the upper Bollinger Band value, Percent B would be 100 (percent).
  • If the closing price is above the upper Bollinger Band, Percent B would be greater than 100.
  • If the closing price is equal to the moving average, Percent B is 50 percent.
  • If the closing price is equal to the lower Bollinger Band, Percent B would be zero.
  • If the closing price is below the lower band, Percent B would be negative.
  • During up trends watch for %B to reach oversold levels for possible buying opportunities.
  • During down trends watch for %B to reach overbought levels for possible short sale opportunities.

%B = [(Price – Lower Band) / (Upper Band – Lower Band)] * 100

Technical analysis focuses on market action — specifically, volume and price. Technical analysis is only one approach to analyzing stocks. When considering which stocks to buy or sell, you should use the approach that you're most comfortable with. As with all your investments, you must make your own determination as to whether an investment in any particular security or securities is right for you based on your investment objectives, risk tolerance, and financial situation. Past performance is no guarantee of future results.

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