Volatility bands plotted two standard deviations above and below a moving average.
Bands widen during high volatility, narrow during low volatility ("squeeze" — often precedes big moves). Price tagging upper band = strength (not necessarily overbought); lower band = weakness. Mean reversion strategies sell upper, buy lower.
Volatility bands plotted two standard deviations above and below a moving average. Bands widen during high volatility, narrow during low volatility ("squeeze" — often precedes big moves). Price tagging upper band = strength (not necessarily overbought); lower band = weakness. Mean reversion strategies sell upper, buy lower.
In technical analysis, Bollinger Bands is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
Bands widen during high volatility, narrow during low volatility ("squeeze" — often precedes big moves). Price tagging upper band = strength (not necessarily overbought); lower band = weakness.
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