RightEdge - The Ultimate Backtesting and Trading System Development Platform
Bollinger Band (Lower) Indicator
Bollinger Bands are a technical trading tool created by John Bollinger in the early 1980s. They arose from the need for adaptive trading bands and the observation that volatility was dynamic, not static as was widely believed at the time.
The purpose of Bollinger Bands is to provide a relative definition of high and low. By definition prices are high at the upper band and low at the lower band. This definition can aid in rigorous pattern recognition and is useful in comparing price action to the action of indicators to arrive at systematic trading decisions.
In some cases, a penetration of the lower band could be considered an oversold condition and a reversal may be forthcoming.