What are Bollinger Bands? How to master Bollinger Band squeeze
What are Bollinger Bands? Bollinger Bands are two standard deviation lines drawn in parallel to a simple moving average. The bands move parallel, in tandem, with the moving average. The two main applications of the bands are to identify -- consolidation, by Bollinger band squeeze and the overbought and oversold condition in a sideways market. The most commonly used SMAs in Bollinger bands are 20 and 25. It was named after its developer John Bollinger. The bandwidth of the Bollinger bands The difference between the upper band and the lower band is the bandwidth. The bandwidth represents the maximum volatility [...]