21st May 2022

Bollinger Band Scans

Bollinger Band Scans

John Bollinger developed the Bollinger bands. Bollinger bands are based on the moving average, and these can be used to find the current market volatility.

Bollinger Band Scans

It is one of the best intraday trading indicators. Bollinger Bands consist of three lines.

  • The middle band is known as the moving average.
  • The upper band and Lower band are the standard deviations from the moving average(+1,-1)

The upper line and lower line indicates the market volatility. If the Bollinger band stretches, it means volatility increases and similarly, the Bollinger band contracts when volatility decreases. 

Features Available in Bollinger Band Scans End of Day

In the Bollinger Band Scans EOD, you can find the stocks that are crossed Bollinger band upper from below, crossed Bollinger band upper from above, crossed Bollinger band lower from below, crossed Bollinger band lower from above. In addition, you can also get the data of stocks like Symbol, LTP, Upper Band, Long Band, scan description.

LTPThe full form of LTP is the Last Traded Price. The price at which the last trade occurs between the buyer and a seller in the stock exchange. The LTP value varies in the live market.
SymbolA stock symbol is a unique series of letters assigned to a security for trading purposes. If you click on any stock symbol, you can view detailed technical information of the stock. 
Crossed BB Upper from  BelowHere you can find the stocks which are crossed bollinger band upper from below.
Crossed BB Upper from  AboveHere you can find the stocks which are crossed bollinger band upper from above
Crossed BB Lower from  BelowHere you can find the stocks which are crossed bollinger band lower from below
Crossed BB Lower from  AboveHere you can find the stocks which are crossed bollinger band lower from above

How to use Bollinger Bands in trading using the intraday screener

Here you can find out the stocks which are near to the lower band or upper band using the intraday screener

  • When the stock price is near to lower band, there are two possibilities the stock may move up or down
    • If the stock price breaks the lower band, we look for a selling opportunity
    • If the stock price doesn’t break the lower band, we can go for buying opportunity
  • When the stock price is near to upper band, there are two possibilities the stock may move up or down
    •  If the stock price breaks the upper band, you can go for the long position 
    • If the stock price doesn’t break the upper band, we can go for the short position
  • Crossed BB Upper from  Below
    • We look for buying opportunity
  • Crossed BB Upper from  Above
    • We look for selling opportunity
  • Crossed BB Lower from  Below
    • We look for buying opportunity
  • Crossed BB Lower from  Above
    • We look for selling opportunity
  • If the Bollinger Bands squeeze, it means the market will break out.
  • Bollinger bands are used to know the high possibility of reversal trades.

Bollinger Band – Example

Let us take an example of “RAMCO CEMENTS” stock in tradingview, which has crossed bollinger band lower from above.

Ramco Cement