Definitions for

**"bollinger bands"****Related Terms:**Moving averages, Stochastics, Mean reversion, Adx, Volatility, Stochastic, Moving average, Simple moving average, Exponential moving average, Moving average convergence/divergence, Historical volatility, Rsi, Ema, Commodity channel index, Macd, Beta coefficient, Stochastic oscillator, Relative strength index, Historic volatility, Momentum, Golden cross, Average true range, Detrend, Standard deviation, Weighted moving average, Price index, Oscillator, Cci, Trend, Vwap, Relative volatility, Beta, Arms index, Coefficient of variation, Breakout, Vix, Averaging, Trin, Index, Average price, Relative strength, Random walk, Smoothing, R-squared, Volatile, Relative performance, Lognormal distribution, Implied volatility, Resistance

Developed by John Bollinger, Bollinger bands consist of 3 lines; a 20 period...

Charting method used to analyze and project a stock's price movement. A Bollinger band marks one standard deviation above the stock's moving price average, and another band marks one standard deviation below this average. Investors use the amount of space between the two bands to gauge the volatility of the market and to guide them in their investment decisions. Developed by John Bollinger, these bands are among the indicators available through the Vision charts features.

A technical analysis overlay which plots three bands onto the underlying price curve. One is the moving average while the other two are bands of volatility: two standard deviations above and below the moving average. Bollinger Bands are available on the FXTrade platform.

These consist of 2 lines either side of a selected moving average. They can be used as envelopes or filters. The upper and lower ‘bands’ are set to a number of standard deviations away from the moving average, normally 2.

A method used by technical analysts, who rely on studying the historical trading patterns of securities to predict their future movements. Bollinger bands are fixed lines above and below a security's average price. As volatility increases, the bands widen.

Plot trading bands above and below a simple moving average. The standard deviation of closing prices for a period equal to the moving average employed is used to determine the band width. This causes the bands to tighten in quiet markets and loosen in volatile markets. The bands can be used to determine overbought and oversold levels, locate reversal areas, project targets for market moves, and determine appropriate stop levels. The bands are used in conjunction with indicators such as RSI, and MACD histograms. Divergence between Bollinger Bands and other indicators show potential action points. As a general guideline, look for selling opportunities when the price activity is in the upper band and buying opportunities when the prices are in the lower band.

Elastic support and resistance channels above and below price bars that respond to the tendency of price to draw back to center after strong movement in either direction. The Bollinger Band center band sets up at the moving average chosen for the indicator.

Bollinger Bands are an indicator that allows users to compare volatility an...

A popular indicator that plots two bands above and below a 20 period moving average. The bands are usually two standard deviations above and below this 20 period moving average. The top and bottom bands define potential support and resistance areas.

Bands which plot two standard deviations away from a simple moving average. As standard deviation is a measure of volatility, Bollinger Bands adjust themselves to the market conditions. When the markets become more volatile they widen and during less volatile periods they contract.

A technical analysis study which creates moving average and volatility bands above and below the price range so that over 95 percent of the prices are contained within this envelope. A price move outside of the bands can be a trend change indicator.

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

Used to determine whether the prices of stocks are high or low on a relative basis. Bands are plotted two standard deviations form a simple moving average and are adjusted to market conditions. The closer the stock prices moved to the upper band, the more overbought the market is. The closer prices move to the lower band, the more undersold the market is.

An indicator that allows users to compare volatility and relative price levels over a period time. This indicator consists of three bands designed to encompass the majority of a security's price action: a simple moving average in the middle; an upper band 2 standard deviations away from the simple moving average (usually set to a time frame of 20); and a corresponding lower band that is also 2 standard deviations away from the moving average. Since the band width is a function of standard deviation, assets with greater volatility will have wider bands.

A quantitative method which combines a moving average with the instrument's volatility. The bands were designed to gauge whether the prices are high or low on relative basis. They are plotted two standard deviations above and below a simple moving average.

A system based on the premise that prices revert to their mean. The standard deviation of the moves away from the mean are used to form two bands around the price. Whenever the price breaks below or above the band, it is deemed too extreme a move and therefore liable to correct back from the standard deviation towards the mean of the price.

Lines drawn above and below the moving average, varying in distance from the moving average of a security's price based on the security's volatility. Chart Keys: Period: 10 Standard Deviation: 2

An indicator that allows users to compare volatility and relative price levels over a period of time. It consists of three bands designed to encompass the majority of a security's price action. Prices will often meet resistance at the upper band and support at the lower band.

This technical indicator plots trading bands two standard deviations above and below a 20 period moving average.

The basic interpretation of Bollinger Bands is that prices tend to stay within the upper and lower bands. The distinctive characteristic of Bollinger Bands is that the spacing between the bands varies based on the volatility of the prices. During periods of extreme price changes (i.e., high volatility), the bands widen to become more forgiving. During periods of low volatility, the bands narrow to contain foreign exchange prices. The bands are plotted two standard deviations above and below a simple moving average. They indicate a "sell" when above the moving average (or close to the upper band) and a "buy" when below it (or close to the lower band). The bands are used by some FX traders in conjunction with other analyses, including RSI, MACD, CCI, and Rate of Change.

Bollinger Bands plot trading bands above and below a simple moving average. The standard deviation of closing prices for a period equal to the moving average employed is used to determine the band width. Traders look for buying opportunities when prices are in the lower band, and selling opportunities when the price activity is in the upper band.

Consists of a centerline and a set of channel lines (Bollinger Bands). The center & channel lines are exponential moving averages. The channel lines are placed at a distance equal to a number of standard deviations above and below the centerline. Since standard deviations are a measure of volatility, the bands are self-adjusting: widening during volatile price action and contracting during tighter trading ranges. Sharp price action is traditionally expected to follow a tight narrowing of the Bollinger Bands.

Bollinger Bands are a technical analysis tool invented by John Bollinger in the 1980s. They evolved from the concept of trading bands, and can be used to measure the relative highness or lowness of price.

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