Definitions
In plain terms
A close above the upper band gives a value above one; a close below the lower band gives a value below zero.
Technical
The state follows directly from the location ratio whenever band width is positive and must not be clipped without an explicit display policy.
Scope
An outside-band value describes location and is not by itself a reversal or continuation signal.
Examples
- A reviewer traces Outside-Band Percent B from aligned inputs through its first-ready row and edge cases before accepting a displayed value.
Common misconceptions
- An outside-band value describes location and is not by itself a reversal or continuation signal.
Concept relationships
Prerequisites
Related
Where this concept is used
Evidence and governance
- 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.
- TA-Lib Bollinger Bands TA-Lib · first party technical publication
Supports: preferred label, short definition, technical definition
Limits: TA-Lib permits moving-average variants beyond the local close-SMA and population-deviation contract.
- Reviewed by
- fintech-builder-batch-009
- Last reviewed
- 2026-07-30
- Next review
- 2027-07-30
- Record status
- published