IG adds more indicators to charts in web platform and mobile app

Online trading major IG has announced enhancements to its trading platforms. Both Bollinger %B and Bollinger Bandwidth are now available to use on IG’s web platform and mobile app.

Bollinger %B indicator helps traders identify where price is in relation to the upper and lower Bollinger Bands. Bollinger %B allows traders to take readings of divergences that often precede market reversals:

• A bearish divergence occurs when there are lower highs in %B during an uptrend in price (higher highs);
• A bullish divergence occurs when there are higher lows in %B during a downtrend in price (lower lows).

The Bollinger Bandwidth gives a reading on the distance between the upper and lower Bollinger Bands. Thus, a low reading could be a sign that volatility is about to rise. Low volatility is often seen as a precursor to a spike in price.

Traders can use the tool in a highly trending market. A fall in volatility is often seen when markets are consolidating, or momentum is building for the next move. A reversal in the direction of the bandwidth can be a sign of a market reversal, as it could mean a recent surge or slump in price is losing momentum.

IG has been regularly updating its platforms. In August this year, for example, the brokerage made Heikin-Ashi candles available on the IG trading platform for both desktop and mobile. The IG team explains that this feature has been one of the highly requested additions to charts as these types of candles are commonly used by traders looking at identifying trends visually without the need of complex analysis.