Bollinger Bands is a technical analysis tool that uses a statistical measure called standard deviation to create upper and lower bands around the moving average of a stock’s price.
The 3BB Scanner simply scans for the stocks which closes above the 3 Standard Deviation Upper Bollinger Band in 15 minute timeframe. We use this as a base watchlist for the stocks that we can trade with 3BB Bollinger Bands Strategy.
- To maintain liquidity, It scans the stocks which are in derivatives.
- 3BB Scanners and in general, Entropy does not work when there is fundamental news.
Scanner Data -
Scanner History -
You can check the last 80 scans/triggers here. (It gets updated daily EOD) –
Beware of Fundamental News!
Now, the entire scanner’s primary base point is Bollinger Band.
This tool works well in normal market conditions, where the stock price follows a log-normal distribution, but it may not make sense in certain situations, such as when there is serious fundamental news that can malform the log-normal distribution.
- In such scenarios, the stock price may experience an abnormal movement that deviates from its usual pattern, causing the Bollinger Bands to become irrelevant.
- For instance, if a company reports a significant drop in earnings or a major scandal, the stock price may plummet with or without Bollinger Bands.
So, if this is no external fundamental news, We have our watchlist!