top of page
Bollinger Bands
Volatility indicator based on a moving average and standard deviations.
Beginner-friendly explanation
Bollinger Bands form a channel around price. When price touches the bands, it may signal reversal or trend continuation.
Example:
If price hits the lower band, it might bounce back up.
Intermediate-level insight
They’re calculated from a moving average with two standard deviations. Narrowing bands often precede volatility spikes.
Example:
A squeeze followed by a bullish breakout may start a new trend.
Advanced perspective
Bollinger Bands are used in advanced breakout or mean-reversion strategies. Their reliability improves with other filters (RSI, volume).
Example:
A trader combines a bounce on the lower band with an oversold RSI for a long entry.
Technical & Chart Analysis
bollinger band, volatility, moving average, standard deviation, channel, breakout, squeeze, mean reversion
bottom of page