Hi hally2710,yes i do have an opinion on this. What you are...

Hi hally2710,

yes i do have an opinion on this. What you are saying depends on the width of the bands to begin with and how much the price has moved say over the last two weeks

if they are narrow and the price has been moving sideways for some time i would say that that is not true at all.

Also if the bands become exceptionally wide, naturally the stock is either overbought or oversold, but the reversal is likely to be only temporary before the bands contract again and then the next explosive price move widening them again

the advanced/paid version of incredible charts has a function called "PercentB". This is the indicator you are talking about, but it needs to be used in conjuction with Bollinger Band Width for it to mean anything

PercentB is the proximity of the price relative to the top and bottom bands.

I calculate this myself in my trading system and I normalize PercentB as 100 being the top band and zero being the bottom

PercentB can go above 100 and below zero(the way I calculate it), above 100 being a piercing of the upper band

I calculate Bollinger bandwidth were the price of the stock represent 100, so a narrow band will be about 5-7% and a wide one can actually be above 100, for speccie stocks rising rapidly with the upper band "balooning out" quite a bit this can happen