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What is Bollinger Bands? - Definition & Explanation

Definition

A technical analysis indicator that measures volatility using standard deviations.

Bollinger Bands Explained

Bollinger Bands are a technical indicator consisting of a simple moving average and two outer bands set at standard deviations above and below, used to measure market volatility and identify overbought or oversold conditions.

Bollinger Bands - Frequently Asked Questions

A squeeze occurs when the bands narrow, indicating very low volatility. This often precedes a significant price move or breakout.