The Bollinger Bands® indicator is an oscillator meaning that it operates between or within a set range of numbers or parameters. As previously mentioned, the standard parameters for Bollinger Bands® are a 20 day period with standard deviations 2 steps away from price above and below the SMA line.
Essentially Bollinger Bands® are a way to measure and visualize volatility. As volatility increases, the wider the bands become. Likewise, as volatility decreases, the gap between bands narrows.
The bands must be thought of as a high and a low points, if the prices cross above the top band it means the asset is overbought and the opposite would indicate an oversold market.
Volatility is to be seen as a cycle, there are periods of expansion and contractions, which indicates high and low volatility markets respectively.
You can subscribe to our newsletter for more latest updates
In the past day, the cryptocurrency market experienced significant volatility, leading to widespread liquidations of…
April 3, 2025 05:24:41 UTC Ripple IPO Date : When Is the Launch Expected? Ripple…
Since it launched in March 2024, Hamster Kombat has become a huge hit in the…
The crypto market experienced heightened volatility in the past 24 hours, triggering significant liquidations. The…
Pi Network supporters are once again left frustrated as Binance skips the token in its…
Ripple has officially integrated its US-pegged stablecoin, RLUSD, into its enterprise-grade cross-border payments platform. This…
