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STRATEGY WITH POINT TP/SL BY SKBTS

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The formula for the standard middle band is simply a moving average, often set to 20 periods:

Middle Band = 20-period moving average (close)

The upper and lower bands are calculated from the standard deviation, which measures how dispersed the price data is from the average.

Upper Band = Middle Band + (2 standard deviations of 20-period close)

Lower Band = Middle Band - (2 standard deviations of 20-period close)

The key inputs are the 20-period moving average, the number of standard deviations (typically 2), and the 20-period standard deviation. The bands will expand and contract based on the standard deviation value.

Some traders increase the standard deviation multiplier to 2.1 or 2.2 to make the bands looser and more sensitive. Decreasing the number of periods for the moving average and standard deviation will also increase sensitivity.

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