Bollinger Bands aka Bollies Developed by John Bollinger, Bollinger Bands® are volatility bands placed above and below a moving average. You will find that most of the time stocks will trade within the Bollies. Volatility is based on the standard deviation, which changes as volatility increases and decreases. The bands widen when volatility increases and narrow when volatility decreases. This dynamic nature of Bollinger Bands also means they can be used on different securities with the standard settings. Note: Bollinger Bands® is a registered trademark of John Bollinger. Below is a chart showing Bollinger Bands: Pink line is the Upper Bollie or UBB Blue line is the Lower Bollie or LBB White line is the Middle Bollie or 20 SMA Note how during the down trend the price stayed between the Lower
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.