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 ?
A break above this resistance could guide index further towards 41,200 level, which is the upper Bollinger band on weekly charts.
The currency also breached its Bollinger band as it dropped to 44.
WTI yesterday settled higher than the 30-day upper Bollinger Band for the fourth time in a week, signaling the market is overbought, according to data compiled by Bloomberg.
It is also at the edge of its lower Bollinger Band, indicating its short-term downtrend is slightly overstretched.
Quantitative Metrics A narrowing Bollinger band and a low ATR adds to the GBP/USD's attractiveness fro scalping strategies.
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 Index may face resistance at 39,600, which is the upper trend line of the bullish channel and upper band of the Bollinger band.
Price was also just trading at the upper bollinger band (here they are 3 standard deviations from the 200 SMA).
Meanwhile, the pair continues to trade between the 20-Day SMA and the lower Bollinger band which it has done since mid-August.
The RSI and MACD are heading down supporting bearish view but a short term price pull back inside the band cannot be ruled out as the index is trading below the lower Bollinger Band.
OVERHEATED Market had also looked overheated on the charts, with the Nikkei having pierced its upper Bollinger Band in the last five trading sessions, indicating its short-term uptrend was overstretched.
A narrow Bollinger band width of 284 bps and an implied volatility of 8.