← Glossary
Bollinger Bands
Bollinger Bands plot an SMA with an upper and lower band a set number of standard deviations away, so the bands widen when recent price action is more volatile and narrow when it's calmer. Price touching a band is a statement about where price sits relative to its own recent range, not a signal on its own.
This explains what bollinger bands measures. It isn't investment advice — see the disclaimer.