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 ?
It can be known from the descriptive statistics and analysis above that Stochastic Oscillator has the highest average return rate, followed by Bollinger Bands and RSI, and OBV has the relatively poor performance.
You can see the Bollinger Bands in the top chart of the picture below.
2) Bollinger bands -- buy signal: long position for the next day open, if the predicted next day close price is higher than the upper Bollinger band line; sell signal: short position for the next day open if the predicted next day close price is smaller than the lower Bollinger band line; out of the market signal: if the predicted next day close price does not fulfill any of these conditions.
The next targets for Euro Fx are 1,31 and then area 1,315/317, an enclosed area between the maximum of Bollinger Bands (1,315) and the long-term relative maximum at 1,317.
Furthermore, Bollinger bands are widening and the 50-day simple moving average remains ascending.
INDICATOR OF THE DAY" - BOLLINGER BANDS The cross has been confined to a well defined range trade since March with the market loosely trading between the 1.
Bollinger Bands are curves drawn in and around the price structure that provide relative definitions of high and low.
Bollinger Bands are volatility curves used to identify extreme highs or lows in price.
Indeed, the Bollinger Bands width is now at the lowest level since November 2007, which was followed by a rapid 300 point break lower, suggesting that EUR/CHF could be facing a break in the near-term as well, though the move has the potential to be bullish or bearish.
In addition, traders can add new indicators, including the Bollinger Bands, MACD, Fibonacci Retracements, the RSI and much more.
Bollinger Bands are a technical trading tool created by John Bollinger in the early 1980s.
Active traders can get full access to some of the leading technical indicators such as moving Averages, Trend Spotter, Barcharts, Bollinger Bands, historic Volatility, Percent Change and many others.