%B of 1 means price is:

At the upper band. At the upper band.

A squeeze often precedes:

Volatility expansion. Calm tends to be followed by movement.

Courses / Volatility and Volume Indicators

Bandwidth and %B

Two derived tools: how wide the bands are and where price sits inside them.

Bandwidth is the distance between the bands divided by the middle band. Low bandwidth shows a squeeze. %B shows where price sits relative to the bands: 1 at the upper band, 0 at the lower, 0.5 at the middle.

Low bandwidth readings relative to the recent past warn of a volatility expansion. %B helps to quantify overbought and oversold relative to the bands.

Use them to keep objective rather than guessing visually.

Key takeaways

Bandwidth shows squeezes
%B = position inside the bands
Objective readings beat guessing

Quiz

Low bandwidth signals: Answer: A squeeze. Bands are tight.
%B of 1 means price is: Answer: At the upper band. At the upper band.
A squeeze often precedes: Answer: Volatility expansion. Calm tends to be followed by movement.

Educational content, not financial advice.