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Lognormal Bollinger Bands

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The standard Bolling Bands assumes a normal distribution. However, a normal distribution is an incorrect model for stock prices. This is because stock prices cannot fall below zero. If we assume that the percentage return follows a normal distribution, then a lognormal distribution is a more accurate model.

This is why I've transformed the standard deviation using the log function. It's much more useful for stock prices that have a low value and high volatility.
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The standard Bolling Bands assumes a normal distribution. However, a normal distribution is an incorrect model for stock prices. This is because stock prices cannot fall below zero. If we assume that the percentage return follows a normal distribution, then a lognormal distribution is a more accurate model.

This is why I've transformed the standard deviation using the log function. It's much more useful for stock prices that have a low value and high volatility .

Invite-only script

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christsocom
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Bollinger Bands (BB)

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Bollinger Bands (BB)

Invite-only script

Only users approved by the author can access this script. You'll need to request and get permission to use it. This is typically granted after payment. For more details, follow the author's instructions below or contact christsocom directly.

TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.

Author's instructions

Warning: please read our guide for invite-only scripts before requesting access.
christsocom
Also on:

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.