What is a Bollinger Band?
Technical Analysis
A Bollinger Band is a volatility indicator made up of a moving average with two bands plotted above and below it, based on standard deviation.
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When the bands widen, it signals rising volatility; when they narrow (“squeeze”), it signals low volatility, often preceding a sharp move. Price touching the upper band can suggest overbought conditions, and the lower band oversold, best used alongside other indicators.
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