FTB-C000517 / Financial concept

BandWidth Scale Invariance

BandWidth Scale Invariance means a positive multiplicative rescaling of every price leaves BandWidth unchanged.

Also known asBBW quote-scale invariance

Definitions

In plain terms

The upper, lower, and middle levels all scale by the same factor, which cancels in the normalized ratio.

Technical

The property holds when the underlying Bollinger contract and multiplier are unchanged and the denominator remains positive.

Scope

Scale invariance does not imply invariance to additive price shifts or comparability across every market context.

Examples

  • A reviewer traces BandWidth Scale Invariance from aligned inputs through its first-ready row and edge cases before accepting a displayed value.

Common misconceptions

  • Scale invariance does not imply invariance to additive price shifts or comparability across every market context.

Concept relationships

Where this concept is used

Evidence and governance

  1. Bollinger Bands Rules John Bollinger · first party methodology

    Supports: preferred label, short definition, technical definition

    Limits: Interpretive rules do not prove forecasting power, trade profitability, or one universal parameter selection.

  2. Bollinger BandWidth TradingView · official platform documentation

    Supports: preferred label, short definition, technical definition

    Limits: No universal squeeze threshold, breakout direction, causal forecast, or profitability claim is adopted.

Reviewed by
fintech-builder-batch-009
Last reviewed
2026-07-30
Next review
2027-07-30
Record status
published