Over the past 30 years, Bollinger Bands have become a staple of global trading. With the Bollinger Band Tool Kit for eSignal, John Bollinger has complied the 31 indicators and systems that he uses to trade, complementing and enhancing the existing power of the eSignal platform.
With the Tool Kit you have access to Bollinger Bands along with the classic Bollinger Band indicators: %b and BandWidth. Building upon John’s classic charting setup are tools to identify the Squeeze and Bulge along with signals for four Bollinger Band Methods, both long and short.
Unique to the Bollinger Band Tool Kit for eSignal are a series of trend, momentum, and volume indicators that have been normalized with Bollinger Bands.
“On the simplest level Bollinger Bands tell you if prices are high or low on a relative basis-but there are many more uses. The Bollinger Band Tool Kit for eSignal includes the analytical tools and indicators that I use to successfully trade on a daily basis.”JOHN BOLLINGER, CFA, CMT
This Tool Kit has been designed by John Bollinger so that you can flexibly integrate his tools into your daily trading style. Some of the tools are free standing and can be used on their own while others are best used in combination with other tool kit elements or analytical tools.
The tools offered in this package can be broken down into the following categories:
Bollinger Band Classics: These are the classic Bollinger Band tools, developed by John Bollinger, that define high and low on a relative basis
• Bollinger Bands
Bollinger Band Markers: These indicators mark Bollinger Band events such as Squeezes, which occur at the beginnings of trends, and Bulges, which occur at the end of trends. In addition they highlight key actions at the upper and lower bands.
Automatic Bollinger Bands: John Bollinger designed these three indicators to take the guesswork out of setting the width of the bands. Just enter the length of the calculation and away you go.
• AutoWidth Bollinger Bands
• AutoWidth %b
• AutoWidth BandWidth
The Normalized Indicators: Most indicators have fixed reference levels. Here John Bollinger has used Bollinger Bands to create adaptive signal levels that morph automatically to account for variable market conditions.
|• Normalized RSI||• Four normalized momentum indicators|
|• Four normalized trend indicators||• Four normalized Volume Indicators|
Bollinger Band Methods: The first three methods were introduced in John Bollinger’s book, Bollinger on Bollinger Bands. Worth special attention is Method IV, which gives continuation signals in trending markets and reversal signals in consolidation ranges.
|• Method I: Reversal System||• Method II: Confirmed Band Breakout|
|• Method III: The Squeeze||• Method IV: Trend Following System|
Volume: Volume indicators illuminate supply and demand characteristics and focus the eye on accumulation and distribution. John Bollinger likes to use Intraday Intensity and the Money Flow Index in his work, but the 14 indicators offered here provide a wider array of possibilities to integrate into your personal strategies.
|• Accumulation-Distribution – Open Form||• Negative Volume Index|
|• Accumulation-Distribution – %oscillator||• Normalized Volume|
|• Intraday Intensity – Open Form||• Positive Volume Index|
|• Intraday Intensity – %oscillator||• Volume Oscillator|
|• On Balance Volume – Open Form||• Volume-Price Trend – Open Form|
|• On Balance Volume – %oscillator||• Volume-Price Trend – Closed Form|
|• Money Flow Index||• Volume-Weighted MACD|
Relative Strength: This simple but powerful concept compares the price action of the charted security to another security, usually the S&P 500. Want to own strong stocks? Hint: this line must be rising.
And there is much more…