%B quantifies a security's price relative to the upper and lower Bollinger Band. There are six basic relationship levels:
%B equals one when the price is at the upper band.
%B equals zero when the price is at the lower band.
%B is greater than one when the price is above the upper band.
%B is less than zero when the price is below the lower band.
%B is greater than .50 when the price is above the middle band (20-day SMA).
%B is less than .50 when the price is below the middle band (20-day SMA).
The default setting for %B is based on the default setting for Bollinger Bands (20,2). The bands are set two standard deviations above and below the 20-day simple moving average, which is also the middle band. The security price used is the closing price or the last trade.
To apply a Percent B Channel Indicator
From within a chart, from the Edit menu select Studies.
Choose Percent Band click Add to add the study to the Applied Studies group.
Complete parameters as necessary.
Once the study is defined, you can elect to uncheck/check to remove and add the study to your chart.
