OpenBB/website/content/platform/reference/technical/bbands.md

title, description, keywords

title	description	keywords
bbands	Learn about Bollinger Bands, a popular trading indicator used to identify volatility, overbought or oversold conditions, support and resistance levels, and price targets. Understand how they work, their parameters, and how to use them effectively in your trading strategy.	Bollinger Bands trading indicator volatility buy or sell signals overbought or oversold conditions support or resistance level price targets moving average standard deviation

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Calculate the Bollinger Bands.

Consist of three lines. The middle band is a simple moving average (generally 20 periods) of the typical price (TP). The upper and lower bands are F standard deviations (generally 2) above and below the middle band. The bands widen and narrow when the volatility of the price is higher or lower, respectively.

Bollinger Bands do not, in themselves, generate buy or sell signals; they are an indicator of overbought or oversold conditions. When the price is near the upper or lower band it indicates that a reversal may be imminent. The middle band becomes a support or resistance level. The upper and lower bands can also be interpreted as price targets. When the price bounces off of the lower band and crosses the middle band, then the upper band becomes the price target.

Examples

from openbb import obb
# Get the Chande Momentum Oscillator.
stock_data = obb.equity.price.historical(symbol='TSLA', start_date='2023-01-01', provider='fmp')
bbands_data = obb.technical.bbands(data=stock_data.results, target='close', length=50, std=2, mamode='sma')
obb.technical.bbands(length=2, data=[{'date': '2023-01-02', 'open': 110.0, 'high': 120.0, 'low': 100.0, 'close': 115.0, 'volume': 10000.0}, {'date': '2023-01-03', 'open': 165.0, 'high': 180.0, 'low': 150.0, 'close': 172.5, 'volume': 15000.0}, {'date': '2023-01-04', 'open': 146.67, 'high': 160.0, 'low': 133.33, 'close': 153.33, 'volume': 13333.33}, {'date': '2023-01-05', 'open': 137.5, 'high': 150.0, 'low': 125.0, 'close': 143.75, 'volume': 12500.0}, {'date': '2023-01-06', 'open': 132.0, 'high': 144.0, 'low': 120.0, 'close': 138.0, 'volume': 12000.0}])

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Parameters

Name	Type	Description	Default	Optional
data	List[Data]	List of data to be used for the calculation.		False
target	str	Target column name.		False
index	str, optional	Index column name to use with data, by default "date".		False
length	int, optional	Number of periods to be used for the calculation, by default 50.		False
std	NonNegativeFloat, optional	Standard deviation to be used for the calculation, by default 2.		False
mamode	Literal["sma", "ema", "wma", "rma"], optional	Moving average mode to be used for the calculation, by default "sma".		False
offset	int, optional	Offset to be used for the calculation, by default 0.		False

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Returns

OBBject
    results : List[Data]
        The calculated data.