Term

Bollinger bands

A Wealth of Knowledge

Bollinger bands is an indicator that measures price volatility, it uses two bands which move on either side of the price one above price and the other below the price. These two bands are separated by a moving average that is in between these two bands. The difference between these two bands is measure using two standard deviation. the upper band being +20 standard deviation and the lower band is calculated by -20 standard deviation from the middle band.

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