Technical analysis

Bollinger Bands

Bollinger Bands frame price with a moving average and two bands that widen or narrow with volatility.

When the bands tighten, volatility is low and a strong move is often brewing. When price touches a band, it is far from its average: not a signal on its own, but a useful marker.

Example

The bands tighten sharply for days, then price breaks out abruptly to the upside.

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