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CCT Bollinger Bands Histogram
Steve Karnish of Cedar Creek Trading developed the CCT Bollinger Band Oscillator. It erases classic Bollinger Bands by drawing 2 parallel lines instead of the inconstant envelopes.
The parallel lines demonstrate a measurement of 2 standard deflections from the middle and represent a zero value and 100 on the chart. The CCT Bollinger Band Oscillator shows the price while it is moving over and under the muddle of 50% and outside the two standard deflections (zero and 100). Penetration of the lower band predicts situation of overselling. In addition, penetration of the upper band demonstrates situation of overbuying.
The CCT Bollinger Band Oscillator is used to identify "discrepancies" and "failure fluctuations" which often result in great reversals. You can use the bands simultaneously with such indicators as MACD histogram, CCI, Rate of Change and RSI. Discrepancies between Bollinger bands and other indicators demonstrate potential action points. The main hint is to search selling opportunities if the price activity is in the upper band and for purchasing opportunities if the price remains in the lower band.