Regional Preferences

Agent Merina

Agent Merina

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Technical Analysis

Bollinger Bands

A volatility indicator made of a moving average plus upper and lower bands set by standard deviation. Like most technical tools, it works best as part of a broader toolkit rather than as a standalone signal for trade decisions.

Meaning

What Bollinger Bands means

A volatility indicator made of a moving average plus upper and lower bands set by standard deviation. Like most technical tools, it works best as part of a broader toolkit rather than as a standalone signal for trade decisions.

Trading context

Why it matters

It shows when price is relatively high or low compared to recent volatility. Traders progressing past the basics tend to lean on this more heavily as they start combining multiple concepts into a coherent trading approach.

Example

How traders may see it

Bands widen in volatile markets and contract during calm periods. Most traders come across this while reviewing charts, monitoring news feeds, or checking their account dashboard, and being able to spot it quickly is a useful practical skill.