EncyclopediaBollinger Bands
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In one line: A moving average with a band above and below it, based on volatility.
The usual setup is a 20-bar average line, with one band above and one below. The distance of the bands depends on how jumpy prices were lately (it uses a statistic called standard deviation). When the market gets wild, the bands get wider. (Source: Investopedia, secondary.)
Touching a band is not automatically a signal. It just says price moved far from its recent average. See Volatility.
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Last checked: 2026-11-04 · Educational, not financial advice.
Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.