BBTrend is a relatively new indicator developed by John Bollinger for working with Bollinger Bands. It is one of the few indicators that can signal strength and direction, which makes it a very valuable tool for traders.

The calculations are quite simple. The default periods of 20 and 50 are displayed. The values are configurable.

Bottom = MathAbs(lowerBB(20) – lowerBB(50))

Top = MathAbs(upperBB(20) – upperBB(50))

BBTrend = (lower – upper) / middleBB (20)

• Bullish trend = BBTrend above zero
• Bearish trend = BBTrend below zero

The position above or below zero determines the strength or momentum of the trend.

• Shorter Bands Period – a shorter period for the Bollinger Bands used in the calculations.
• Longer Bands Period – the longer period for the Bollinger Bands used in the calculations.
• iBands Shift – the “shift” used in the calculations of both longer and shorter Bollinger Bands (iBands).
• iBands Deviation – the ” deviation” used in the calculations of both longer and shorter Bollinger Bands (iBands).