Adjusted Bollinger Bands

The Adjusted Bollinger Band (aBB) indicator is now available directly inside TradingView — the platform you’re already using. Apply it to any chart, on any timeframe, and let it surface high-probability mean-reversion setups automatically.

aBB indicator showing Buy and Sell signals on a daily chart

T. Rowe Price Group (TROW) — Daily chart. Green triangles mark confirmed Buy signals; red triangles mark confirmed Sell signals. The aBB adapts to percentage-based volatility, not raw price, so signals remain meaningful across all price ranges and timeframes.

Works on Every Timeframe

Whether you trade intraday on the 5-minute chart, swing trade on the daily, or hold positions for weeks on the weekly — the aBB recalibrates to the volatility regime of whatever timeframe you’re viewing. The same signal logic applies: wait for an extreme 4σ breach, then take the 3σ close-back as confirmation. No parameter tweaking required.

How Signals Are Generated

  • Buy Signal — Price closes below the −4σ band (statistically extreme oversold), then recovers above the −3σ band. The two-bar confirmation filters out false breakdowns and identifies genuine mean-reversion bounces.
  • Sell Signal — Price closes above the +4σ band (statistically extreme overbought), then rolls back below the +3σ band. This sequence captures exhaustion moves before the reversal accelerates.

Why Adjusted Bollinger Bands?

Standard Bollinger Bands measure standard deviation of price, which causes bands to widen disproportionately for high-priced stocks and shrink for low-priced ones. The aBB uses log-return standard deviation instead — making band width a true measure of percentage volatility. The result is consistent, comparable signals across the entire market, from a $5 small-cap to a $500 large-cap.

Ready to add it to your charts?

The aBB indicator is part of the QNTR toolkit — a suite of professional-grade tools built for active options traders and technical analysts. Access it through your QNTR membership, or reach out directly if you’d like a walkthrough.

Available for a one-time fee of $50 — no subscription required.

This indicator is for informational and educational purposes only and does not constitute financial advice. Past signals are not indicative of future results.