The Bollinger Oscillator illustrates the relative position of the Bollinger Bands to the closing price of the instrument.
A reading of zero means that price closed on the lower band.
A value of 50 means that the close is at the middle of the Bollinger band.
A value of 100 means a close over the upper band.
Another usual interpretation is that it’s overbought above 100 and oversold below 0.
Sell on overbought or perhaps it’s best to buy when everyone else is buying!
This is a great tool to read the famous Bollinger Bands in a new way. Implement it how you like and let a new strategy develop itself!