Trading Band (Bottom) [TBandBottom]

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The Trading Band (Bottom) function calculates the lower band of a moving average envelope for a field, using a percentage of the value for the width of the envelope. Parameters ------------------ Data          The data to use in the average. This is typically a field in a data series or a calculated value. Period        The number of bars of data to include in the average, including the current value.                   For example, a period of 3 includes the current value and the two previous values.                   A period of 20 is recommended, while periods less than 10 may be significantly less useful. Percent      The percent (typically 1 to 100) of the value to include in the width of the envelope.                   Note that non-integer and variable widths can be used. Indicator Value ------------------------ Trading Bands are a pair of values placed as an "envelope" around a data field. The values are calculated by taking the moving average of the data for the given period and adding or subtracting a percentage of the moving average. Since Trading Bands use a moving average, the value at the beginning of a data series is not defined until there are enough values to fill the given period. Usage ----------- Trading Bands are useful for determining whether current values of a data field are behaving normally or breaking out in a new direction. For example, when the closing price of a security increases above its upper Trading Band, it will typically increase in that direction. Trading Bands are similar to Bollinger Bands and share many of their characteristics. However, unlike Bollinger Bands, Trading Bands do not vary in width based on volatility. Source ------------ This indicator is based on an entry in "Technical Analysis From A To Z" by Steven B. Achelis.