Bollinger Bands, a technical analysis tool that evolved from the term trading bands was invented by John Bollinger in the 80s. These bands are used to measure the shift of prices (volatility) due to previous trade highs and lows. Many compare Bollinger Bands to moving average envelopes. Bollinger Bands. The area between the opening price and the closing price is known as the body. When the close is higher than the open the body is green. When the close is lower than the open the body is red. The blue sections of the bar fill out the remainder of the range, from the top of the body John Bollinger's weekly Market Timing Report Includes many classic market-timing indicators such as the Advance-Decline Line, the High-Low Index and several volatility indicators. There are currently 32 charts covering the US and international markets and commodities. Bollinger Bands are a technical indicator for stock charts created by John Bollinger in the early 1980s. Bollinger Bands can also be refered to as trading bands. The purpose of the Bollinger is to provide a projected high and low price by the placement of bands on the stock chart. The Bollinger Bands appear on the chart as 3 bands. The Middle band being a simple moving average usually plotted in a 20 period. Bollinger Bands Stock Scans These "Bollinger Bands" scans can help you find stocks which are exhibiting certain volatility characteristics and/or patterns. A major concept behind the bands is that stocks continually move between phases of high volatility to low volatility and back to high.
Bollinger Bands can be found in SharpCharts as a price overlay. As with a Click here for a live example. Bollinger Charts: Complete access to our fully customizable charts including the full Bollinger Band suite of indicators, plus more than 50 indicators, TrendLines, Systems
Live Chart ; Asset classes Currency pairs Find out more about Building a Trading Strategy with Bollinger Bands® Our expert analysis, charts and visuals will help you learn the basics of Bollinger Bands can be found in SharpCharts as a price overlay. As with a simple moving average, Bollinger Bands should be shown on top of a price plot. Upon selecting Bollinger Bands, the default setting will appear in the parameters window (20,2). The first number (20) sets the periods for the simple moving average and the standard deviation.
Bollinger Bands You can customize your charts with Bollinger Bands and over 50 indicators, TrendLines and systems/stops. If you are not sure what an indicator does, just click on the ? for a quick explanation. Control the number of days shown in the chart by clicking on the + - or expand/contract the data by dragging the highlighted area. One popular technical indicator used to gauge price volatility of an asset is the Bollinger Band. Bollinger bands are typically setup with a 2-standard deviation channel around an underlying’s Bollinger bands are commonly used as a “reversion to the mean” indicator. If price is below the Bollinger bands, it might be taken as an indication that price is currently too low. Likewise, if the price is above the bands, price may be interpreted as being too high. Bollinger bands are also commonly used as a volatility indicator. Bollinger Bands (BB) were created in the early 1980’s by financial trader, analyst and teacher John Bollinger. The indicator filled a need to visualize changes in volatility which is of course dynamic, however at the time of the Bollinger Band’s creation, volatility was seen as static. USDCHF Hourly Chart with 2-Standard Deviation Bollinger Bands. Bollinger Band Squeeze. The above chart also illustrates a Bollinger Band squeeze. The movement of prices tends to oscillate back and forth between periods of high and low volatility, regardless of the direction prices are moving in. For the double Bollinger Bands strategy two Bollinger Bands are required on a chart. The first set of bands is one standard deviation from the SMA. The second set of bands is two standard deviations from the SMA. With five lines on the chart, four trading zones are created:
Technical Indicators and Chart Studies: Definitions and Descriptions. Technical Indicators and Chart Studies: Definitions and Descriptions. Bollinger Bands® Bollinger Bands Width (BBW) is a technical analysis indicator derived from the standard Bollinger Bands indicator. Bollinger Bands are a volatility indicator which creates a band of three lines which are plotted in relation to a security's price. The Middle Line is typically a 20 Day Simple Moving Average.