Bollinger Bands
Bollinger Bands: a simple moving average with bands a number of standard deviations above and below, showing volatility and relative price extremes.
How to read it
- Narrow bands (a squeeze) often come before a strong move.
- Closes outside a band show strength in that direction, not automatically a reversal.
- In ranges, price tends to rotate between the bands and the middle line.
Key settings
- Period 20, standard deviation 2, source close.
- Line width and band opacity.
Good to know
- Drawn on the price pane, over the candles.