Bollinger Bands are used to measure a market’s volatility. Bollinger bands consist of two bands designed to encompass the majority of a security’s price action. When the bands have tightened it confirms low volatility. The opposite is also true. When the bands widen, volatility is higher. Bollinger Bands are plotted at standard deviation levels above and below a moving average as it measures volatility.
- The Bollinger Bounce
- The Bollinger Squeeze
- Bollinger Bands and the RSI Indicator