Mastering Bollinger Bands | Bollinger Band squeeze uncovered
What is Bollinger Band? Bollinger Bands are developed by John Bollinger to identify and to take advantage of the volatility in the market. It consists of a simple moving average and two standard deviations of the same moving average known as the bands. The bands move parallel, in tandem, with the moving average. The most commonly used simple moving averages in Bollinger band are 20 SMA and 25 SMA. The two main applications of Bollinger bands are to identify - consolidation, by Bollinger band squeeze - the overbought and oversold condition in a sideways market. The bandwidth of the [...]