Glossary › Bollinger Bands

Trading glossary · indicators

Bollinger Bands

Three lines around price: a middle average and two outer lines that move apart when price jumps around and squeeze together when it is calm.

The fuller meaning

A 20-period simple moving average with bands two standard deviations above and below it. Band width tracks volatility: very narrow bands, a squeeze, often come before bigger moves but do not tell the direction. A close outside a band shows strength, not an automatic reversal.

Bollinger Bands, also called Bollinger Band.

Related words

61.8% level · ATR · ATR expansion · bearish divergence · bullish divergence · crossover · %D · death cross · divergence · dynamic resistance