Indicators

Bollinger Bands

A volatility indicator: a moving average with upper and lower bands plotted a set number of standard deviations away, widening as volatility changes.

Bollinger Bands are a volatility indicator made of three lines: a middle moving average, and an upper and lower band plotted a set number of standard deviations away from it. When volatility rises, the bands widen; when volatility falls, they narrow (sometimes called a “squeeze”). The bands are an overlay indicator, plotted directly on the price chart alongside the candlesticks.

See how the bands are built and read in Bollinger Bands Explained on TradingView.