Definitions
In plain terms
The D07 variant multiplies the upper-minus-lower ratio by 100 and therefore publishes percent units.
Technical
Its contract freezes the underlying Bollinger variant, positive-middle rule, percent or ratio convention, readiness, and contextual comparison horizon.
Scope
Low BandWidth measures compression but does not identify the direction or certainty of a later move.
Formula
BandWidth = 100 * (upper band - lower band) / middle bandBBW_t=100\frac{U_t-L_t}{M_t}| Symbol | Meaning | Unit |
|---|---|---|
U_t | Bollinger upper band | price units |
L_t | Bollinger lower band | price units |
M_t | Bollinger middle band | price units |
Output unit: percent
Examples
- A reviewer traces Bollinger BandWidth from aligned inputs through its first-ready row and edge cases before accepting a displayed value.
Common misconceptions
- Low BandWidth measures compression but does not identify the direction or certainty of a later move.
Concept relationships
Related
Where this concept is used
Evidence and governance
- Bollinger Bands Rules John Bollinger · first party methodology
Supports: preferred label, short definition, technical definition, formula
Limits: Interpretive rules do not prove forecasting power, trade profitability, or one universal parameter selection.
- Bollinger BandWidth TradingView · official platform documentation
Supports: preferred label, short definition, technical definition, formula
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