Bollinger Bands


Bollinger Bands are a highly popular technical analysis technique. Many traders believe the closer the prices move to the upper band, the more overbought the market, and the closer the prices move to the lower band, the more oversold the market.

Bollinger Bands are not a standalone trading system. They are simply one indicator designed to provide traders with information regarding price volatility. It is recommended to use them with two or three other non-correlated indicators that provide more direct market signals. Therefore, Bollinger band can be a perfect auxiliary tool to complement the signals derived from other indicators