# 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.