bollinger

Time series Bollinger band

Using a fints object for the Data argument of bollinger is not recommended. Use a matrix, timetable, or table instead for financial time series. For more information, see Convert Financial Time Series Objects fints to Timetables.

Syntax

[middle,upper,lower] = bollinger(Data)

[middle,upper,lower] = bollinger(___,Name,Value)

Description

[middle,upper,lower] = bollinger(Data) calculates the middle, upper, and lower bands that make up the Bollinger bands from a series of data. A Bollinger band chart plots actual asset data along with three other bands of data: the upper band that is two standard deviations above a user-specified moving average; the lower band that is two standard deviations below that moving average; and the middle band that is the moving average itself.

[middle,upper,lower] = bollinger(___,Name,Value) adds optional name-value pair arguments.

Examples

Calculate the Bollinger Bands for a Data Series for a Stock

Load the file SimulatedStock.mat, which provides a timetable (TMW) for financial data for TMW stock.

load SimulatedStock.mat
[middle,upper,lower]= bollinger(TMW);
CloseBolling = [middle.Close, upper.Close,... 
lower.Close];
plot(middle.Time,CloseBolling)
title('Bollinger Bands for TMW Closing Prices')

Input Arguments

Data — Data for market prices

matrix | table | timetable

Data for market prices, specified as a matrix, table, or timetable. For matrix input, Data must be column-oriented.

Data Types: double | table | timetable

Name-Value Arguments

Specify optional pairs of arguments as Name1=Value1,...,NameN=ValueN, where Name is the argument name and Value is the corresponding value. Name-value arguments must appear after other arguments, but the order of the pairs does not matter.

Before R2021a, use commas to separate each name and value, and enclose Name in quotes.

Example: [middle,upper,lower] = bollinger(TMW_CLOSE,'WindowSize',10,'Type',1)

WindowSize — Number of observations of input series to include in moving average in periods

10 (default) | positive integer

Number of observations of the input series to include in the moving average in periods, specified as the comma-separated pair consisting of 'WindowSize' and a scalar positive integer.

Data Types: double

Type — Type of moving average to compute

0 (simple) (default) | integer with value 0 or 1

Type of moving average to compute, specified as the comma-separated pair consisting of 'Type' and a scalar integer with a value of 0 (simple) or 1 (linear).

Data Types: double

NumStd — Number of standard deviations for the upper and lower bounds

2 (default) | positive integer

Number of standard deviations for the upper and lower bounds, specified as the comma-separated pair consisting of 'NumStd' and a scalar positive integer.

Data Types: double

Output Arguments

middle — Moving average series representing the middle band

matrix | table | timetable

Moving average series representing the middle band, returned with the same number of rows (M) and the same type (matrix, table, or timetable) as the input Data.

upper — Moving average series representing the upper band

matrix | table | timetable

Moving average series representing the upper band, returned with the same number of rows (M) and the same type (matrix, table, or timetable) as the input Data.

lower — Moving average series representing the lower band

matrix | table | timetable

Moving average series representing the lower band, returned with the same number of rows (M) and the same type (matrix, table, or timetable) as the input Data.

References

[1] Achelis, S. B. Technical Analysis from A to Z. Second Edition. McGraw-Hill, 1995, pp. 72–74.

Version History

Introduced before R2006a

R2022b: Support for negative price data

The Data input accepts negative prices.