How to Create a Bollinger Bands® Hybrid Leading Indicator - Candlestick Patterns Explained by TechniTrader®

Use %B in Combination with Time Segmented Volume

Many traders do not know that there are several variations of Bollinger Bands designed by John Bollinger. One of those is %B, which is a Line Indicator that can be used with Time Segmented Volume (TSV) in the Worden Bros. TC2000 Charting Software. Together, they create a Hybrid Leading Indicator for Swing, Day, Momentum, and Options Trading.

Below is a chart showing a harmonic upside momentum-building phase before the breakout. The stock has been in a tight consolidation for a couple days. Time Segmented Volume and %B start to sync with Time Segmented Volume above %B.

Momentum is building within this tightening consolidation, and it is confirmed by the indicator patterns. Then, the stock moved with sudden momentum. See the second chart example below.

With Worden TC2000 Charting Software, traders have plenty of flexibility in setting up these indicators. The chart examples in this article use the Time Segmented Volume indicator and %B in the same indicator chart window. This provides a specific analysis that enables Retail Traders to interpret Price and stock Volume action in a unique way.

This indicator combination analysis approach is a TechniTrader-exclusive format. The combination of indicators completes the data set needed for fast and reliable analysis of both Price and stock Volume over time. This analysis is simple, straightforward, and easy to use.

Using Relational Technical Analysis™, which is the new approach to reading and interpreting stock charts, the goal is to identify harmonic patterns between Bollinger %B and Time Segmented Volume. This is just one of several different %B and Time Segmented Volume patterns that can be used for Stock or Options Trading.

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Trade Wisely,

Martha Stokes CMT

TechniTrader technical analysis using TC2000 charts, courtesy of Worden Bros.

Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses