Bollinger Bands

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Bollinger Bands

Plus or minus two standard deviations where the standard deviations are calculated historically in a moving window estimation. Hence, the bands will widen if the most recent data is more volatile. If the prices break out of the band, this is considered a significant move.

Bollinger Bands

In technical analysis, charts or tables that compare a security's volatility to its price over time. Bollinger Bands? consist of a simple moving average of the security's price over a given number of days (usually 20 or 21), plus one upper limit and one lower limit. The limits are calculated as the amount of the moving average plus or minus two standard deviations. The purpose of Bollinger Bands is to provide a working definition of a security's upper and lower price limit, to indicate if volatility is increasing, decreasing, or staying the same. Bollinger Bands are one of the most popular technical analysis tools. Bollinger Bands are the registered trademark of John Bollinger, who developed them.

Bollinger Bands

The outer limits of the market's price variations that are used by technical analysts to determine if the market is overbought or oversold. The bands are plotted two standard deviations on each side of the moving average. The closer the market average moves to the lower band, the more oversold the market. Conversely, the closer the average to the upper band, the more overbought the market.
References in periodicals archive ?
Quantitative Metrics A declining ATR and narrowing Bollinger band adds to the USDCHF's attractiveness and validates the measured pace the pair has maintained.
Quantitative Metrics A widening Bollinger band and rising ATR are negative signs for scalpers and should proceed with caution when trading this pair.
Price can, and does, walk up the upper Bollinger Band and down the lower Bollinger Band.
However, a wide Bollinger band width clearly shows that sterling is prone to volatile price movements which is a red flag for high frequency traders.
Quantitative Metrics A widening Bollinger band width and rising ATR detract from EURGBP's attractiveness as a prior for scalpers to target which makes the pair riskier then we would like.
A sizable Bollinger band width and an implied volatility of 13.
MetaStock Pro was the winner in the "Software greater than $1,000," MetaStock End of Day won in the "Software between $500 and $1,000," and Bollinger Band System and John Murphy's Chart Pattern Recognition shared "Plug-In Software" winner honors.
The Bollinger Band System is also a reactive system that attempts to verify divergent prices away from fair value.
However, the widening Bollinger band is a concern and underlines the recent volatility that we have seen from Sterling crosses.
Quantitative Metrics A narrowing Bollinger band and declining ATR adds to the attractiveness of the EUR/USD for scalpers.
Quantitative Metrics The USD/JPY price action has been confined in between the 20-Day SMA and lower Bollinger band outside of a brief breakout on the 28th which has kept the bands width steady.
However, a wide Bollinger band speaks to recent volatility the pair has experienced which saw it decline over 300 pips.