bollinger band

Using Bollinger Bands in Trading

What are Bollinger Bands: Bollinger bands were devised by a technical trader named John Bollinger. They represent volatility indicators. We wrote about volatility in our previous article. Bollinger bands consist of a moving average, an upper band and a lower band. The middle band represents the 20 period moving average. The upper band is two standard deviation of price plus the 20-day (Simple Moving Average) SMA. The lower band is the middle band minus two standard deviations of price. The …

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