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Bollinger Bands
Plus or minus two standard deviations where the standard deviations are calculated
historically in a moving window estimation. Hence, the bands will widen if the most recent data is more volatile. If the prices break out of the band, this is considered a significant move.
Bollinger bands
Bollinger bands, named after their founder John Bollinger, have been a popular method of technical analysis for several years. They measure the support for, and resistance to price changes of any particular stock, by plotting the standard deviation of the moving average of a price.The longer a period of low volatility, the closer the bands are together, and the more likely it is that there will be a price breakout from the established price pattern.
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