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Bollinger bands

The Bollinger Bands developed by John Bollinger overlay two standard deviations and a moving average on the chart. The Bollinger bands extract (move further away from each other) when the market is volatile, and contract (move closer to each other) when the market is less volatile. There are many popular uses of the Bollinger bands in technical analysis. Traders use different interaction to trigger actions (like change a stop loss or place a bid) and to detect signs of significant volatility increase just after the two standard deviation lines are close to each other and the moving average. Bollinger bands are very popular among binary options traders.

Bollinger bands



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