Trading Tools

Bollinger Bands in Pine Script

5 min read

Bollinger Bands in Pine Script

Bollinger Bands are a volatility indicator that adapts to market conditions. This guide covers all Bollinger Bands implementations.

Basic Bollinger Bands

Simple BB

//@version=6
indicator("Bollinger Bands", overlay=true)
 
length = input.int(20, "Length")
mult = input.float(2.0, "Multiplier")
 
bb = ta.bb(close, length, mult)
 
plot(bb.upper, color=color.red, title="Upper")
plot(bb.middle, color=color.blue, title="Middle")
plot(bb.lower, color=color.green, title="Lower")

BB with Fill

//@version=6
indicator("BB with Fill", overlay=true)
 
bb = ta.bb(close, 20, 2)
 
upper = plot(bb.upper, color=color.red)
lower = plot(bb.lower, color=color.green)
fill(upper, lower, color=color.new(color.gray, 90))
 
plot(bb.middle, color=color.blue)

BB Width Indicator

Band Width

//@version=6
indicator("BB Width", overlay=false)
 
bb = ta.bb(close, 20, 2)
 
// Band width
width = bb.upper - bb.lower
 
// Percent width
widthPct = (bb.upper - bb.lower) / bb.middle * 100
 
plot(width, title="Width", color=color.blue)
plot(widthPct, title="Width %", color=color.orange)

BB Squeeze Detection

//@version=6
indicator("BB Squeeze", overlay=false)
 
bb = ta.bb(close, 20, 2)
width = (bb.upper - bb.lower) / bb.middle * 100
 
// Squeeze threshold (customize for your market)
squeezeThreshold = width < 2.0
 
plot(width, title="Width %", color=color.blue)
plot(squeezeThreshold ? width : na, title="Squeeze", color=color.red, style=plot.style_histogram)
 
hline(2.0, color=color.gray, linestyle=hline.style_dashed)

BB with Different Sources

Custom Source BB

//@version=6
indicator("BB Custom Source", overlay=true)
 
src = input.source(close, "Source")
length = input.int(20, "Length")
mult = input.float(2.0, "Multiplier")
 
bb = ta.bb(src, length, mult)
 
plot(bb.upper, color=color.red)
plot(bb.middle, color=color.blue)
plot(bb.lower, color=color.green)

VWAP BB

//@version=6
indicator("VWAP BB", overlay=true)
 
vwap = ta.vwap(close)
bb = ta.bb(vwap, 20, 2)
 
plot(vwap, color=color.purple, title="VWAP")
plot(bb.upper, color=color.red)
plot(bb.lower, color=color.green)

BB Breakout Signals

Touching Bands

//@version=6
indicator("BB Touch Signals", overlay=true)
 
bb = ta.bb(close, 20, 2)
 
// Touch upper band
touchUpper = high >= bb.upper
 
// Touch lower band
touchLower = low <= bb.lower
 
// Middle touch
touchMiddle = close > bb.middle and close[1] < bb.middle
 
plotshape(touchUpper, location=location.abovebar, style=shape.labeldown, color=color.red, text="UPPER")
plotshape(touchLower, location=location.belowbar, style=shape.labelup, color=color.green, text="LOWER")
plotshape(touchMiddle, location=location.belowbar, style=shape.triangleup, color=color.blue)
 
plot(bb.upper, color=color.red)
plot(bb.middle, color=color.blue)
plot(bb.lower, color=color.green)

Breakout Strategy

//@version=6
indicator("BB Breakout", overlay=true)
 
bb = ta.bb(close, 20, 2)
 
// Consolidation (narrow bands)
consolidating = (bb.upper - bb.lower) / bb.middle < 0.03
 
// Breakout up
breakoutUp = close > bb.upper and consolidating
 
// Breakout down
breakoutDown = close < bb.lower and consolidating
 
// Plot
plot(bb.upper, color=color.red)
plot(bb.lower, color=color.green)
 
// Signals
plotshape(breakoutUp, location=location.belowbar, style=shape.labelup, color=color.lime, text="BUY")
plotshape(breakoutDown, location=location.abovebar, style=shape.labeldown, color=color.red, text="SELL")
 
// Background
bgcolor(consolidating ? color.new(color.yellow, 90) : na)

BB Mean Reversion

Mean Reversion Strategy

//@version=6
indicator("BB Mean Reversion", overlay=true)
 
bb = ta.bb(close, 20, 2)
 
// Price below lower band = oversold
oversold = close < bb.lower
 
// Price above upper band = overbought
overbought = close > bb.upper
 
// Return to mean
reversionUp = close > bb.middle and close[1] < bb.lower
reversionDown = close < bb.middle and close[1] > bb.upper
 
// Plot
plot(bb.upper, color=color.red)
plot(bb.middle, color=color.blue)
plot(bb.lower, color=color.green)
 
// Signals
plotshape(oversold, location=location.belowbar, style=shape.labelup, color=color.green, text="OVERSOLD")
plotshape(overbought, location=location.abovebar, style=shape.labeldown, color=color.red, text="OVERBOUGHT")
 
// Reversions
plotshape(reversionUp, location=location.belowbar, style=shape.triangleup, color=color.lime)
plotshape(reversionDown, location=location.abovebar, style=shape.triangledown, color=color.maroon)

Double Bollinger Bands

DBB System

//@version=6
indicator("Double BB", overlay=true)
 
// Inner BB
bb1 = ta.bb(close, 20, 1)
 
// Outer BB
bb2 = ta.bb(close, 20, 2)
 
// Plot all bands
plot(bb2.upper, color=color.red, title="Outer Upper")
plot(bb2.middle, color=color.orange, title="Outer Middle")
plot(bb2.lower, color=color.red, title="Outer Lower")
 
plot(bb1.upper, color=color.green, title="Inner Upper")
plot(bb1.middle, color=color.blue, title="Inner Middle")
plot(bb1.lower, color=color.green, title="Inner Lower")
 
// Zones
fill(plot(bb1.upper), plot(bb2.upper), color=color.new(color.red, 90))
fill(plot(bb1.lower), plot(bb2.lower), color=color.new(color.green, 90))

BB with RSI Combo

BB + RSI

//@version=6
indicator("BB + RSI", overlay=false)
 
bb = ta.bb(close, 20, 2)
rsi = ta.rsi(close, 14)
 
// Plot BB (as histogram)
width = bb.upper - bb.lower
plot(width, title="BB Width", color=color.blue)
 
// Plot RSI
plot(rsi, color=color.red, title="RSI")
 
// Combined
rsiBBLong = rsi < 30 and close < bb.lower
rsiBBShort = rsi > 70 and close > bb.upper
 
plotshape(rsiBBLong, location=location.bottom, style=shape.arrowup, color=color.lime)
plotshape(rsiBBShort, location=location.top, style=shape.arrowdown, color=color.red)
 
hline(70)
hline(30)

BB%B Indicator

Percent B

//@version=6
indicator("BB %B", overlay=false)
 
bb = ta.bb(close, 20, 2)
 
// %B = (Price - Lower) / (Upper - Lower)
percentB = (close - bb.lower) / (bb.upper - bb.lower) * 100
 
plot(percentB, title="%B", color=color.blue)
hline(100, color=color.red)
hline(0, color=color.green)
hline(50, color=color.gray)

Complete BB Indicator

//@version=6
indicator("Complete BB System", overlay=true)
 
// === INPUTS ===
length = input.int(20, "Length")
mult = input.float(2.0, "Multiplier")
showWidth = input.bool(true, "Show Width")
showSignals = input.bool(true, "Show Signals")
 
// === CALCULATIONS ===
bb = ta.bb(close, length, mult)
width = (bb.upper - bb.lower) / bb.middle * 100
 
// === PLOTTING ===
plot(bb.upper, color=color.red, title="Upper")
plot(bb.middle, color=color.blue, title="Middle")
plot(bb.lower, color=color.green, title="Lower")
 
// === SIGNALS ===
if showSignals
    // Buy: Touch lower band + bounce
    buySignal = ta.crossover(close, bb.lower)
    // Sell: Touch upper band + reversal
    sellSignal = ta.crossunder(close, bb.upper)
 
    plotshape(buySignal, location=location.belowbar, style=shape.labelup, color=color.lime, text="BUY")
    plotshape(sellSignal, location=location.abovebar, style=shape.labeldown, color=color.red, text="SELL")

BB Strategies

Basic BB Strategy

//@version=6
strategy("BB Strategy")
 
bb = ta.bb(close, 20, 2)
 
// Long entry
if ta.crossover(close, bb.lower)
    strategy.entry("BB Long", strategy.long)
 
// Short entry
if ta.crossunder(close, bb.upper)
    strategy.entry("BB Short", strategy.short)
 
// Exit at middle
if ta.crossover(close, bb.middle)
    strategy.close_all()
 
plot(bb.upper)
plot(bb.middle)
plot(bb.lower)

BB Squeeze Breakout Strategy

//@version=6
strategy("BB Squeeze Breakout")
 
length = input.int(20, "Length")
 
bb = ta.bb(close, length, 2)
 
// Squeeze
squeeze = (bb.upper - bb.lower) / bb.middle < 0.02
 
// Breakout
longEntry = close > bb.upper and squeeze
shortEntry = close < bb.lower and squeeze
 
if longEntry
    strategy.entry("Long", strategy.long)
 
if shortEntry
    strategy.entry("Short", strategy.short)
 
// Exit
strategy.exit("Exit", stop=strategy.position_avg_price * 0.98, limit=strategy.position_avg_price * 1.04)
 
plot(bb.upper)
plot(bb.lower)

BB Mean Reversion Strategy

//@version=6
strategy("BB Mean Reversion")
 
bb = ta.bb(close, 20, 2)
 
// Oversold - buy
if close < bb.lower
    strategy.entry("Long", strategy.long)
 
// Overbought - sell
if close > bb.upper
    strategy.entry("Short", strategy.short)
 
// Exit at middle band
if strategy.position_size > 0 and close > bb.middle
    strategy.close_all()
 
if strategy.position_size < 0 and close < bb.middle
    strategy.close_all()
 
plot(bb.upper)
plot(bb.middle)
plot(bb.lower)

BB Reference

ConceptDescription
Upper BandMiddle + (StdDev × 2)
Middle Band20-period SMA
Lower BandMiddle - (StdDev × 2)
Narrow BandsLow volatility / Squeeze
Wide BandsHigh volatility
Price at 0%At lower band
Price at 100%At upper band

Next Steps

  • atr - Learn ATR indicator
  • volume - Learn Volume analysis
  • basics - Build strategies

Bollinger Bands adapt to volatility and help identify price extremes.

Graph View

Backlinks