Bollinger Bands Breakout Oscillator
Created Jun 20, 2022
(c) LuxAlgo
The Bollinger Bands Breakout Oscillator is an oscillator returning two series quantifying the significance of breakouts between the price and the extremities of the Bollinger Bands indicator.
Each series is calculated by summing the distance between price and a respective Bollinger Bands extremity in the case price is outside this extremity and divided by the sum of the absolute distance between price and a respective extremity. This sum is done over the most recent Length bars.
Bullish breakouts are represented by the green areas of the indicator, while bearish breakouts are represented by the red areas of the indicator.
The oscillator can determine the presence of an uptrend when the bullish area is superior to the bearish area, while a downtrend is indicated by a bearish area being superior to the bullish one. The significance of the breakout is determined by the amplitude of each area, with higher amplitudes indicating more significant breakouts or strong trends.
Using higher Mult values would naturally return wider bands, which would induce less frequent breakouts, this would be highlighted by the oscillator.
SETTINGS
Length: Period of the Bollinger Bands indicator
Mult: Controls the width of the Bollinger Bands
Src: Input source of the indicator
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