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 ?
Estimation of the Forecast Variability: Bollinger Bands. Bollinger Bands is a tool of technical analysis invented by Bollinger at the beginning of the 80s of the 20th century [45].
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.
Section 2 briefly describes related work on resource allocation, SLA, fault tolerance, moving average, and Bollinger Bands in cloud computing.
Bollinger bands are used as a tool for both confirming momentum or a reversion towards the mean
You can see the Bollinger Bands in the top chart of the picture below.
All three solutions will deal with the same methods of trading decision making that are based on the technical analysis indicators, such as moving averages, Bollinger bands, oscillators, or breakouts.
Chartable technical analysis tools will include: Bollinger Bands. Commodity Channel Index, Directional Movement Index, Displaced Moving Avg., Envelope, Exponential Moving Avg., High/Low Moving Avg., Highest High/Lowest Low, Historic Volatility, Least Squares Linear Reg., Line Oscillator.
discussed in [1] the Bollinger bands for the Black-Scholes model.
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 1.5000-1.5200 range.
Bollinger Bands are volatility curves used to identify extreme highs or lows in price.