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
Ripple recently moved over 230 million XRP, valued at around $498 million, to an unknown…
Donald Trump, often called “The Crypto President,” has reportedly earned over $1 billion from crypto…
The SUI price triggered a strong reversal before the daily close, pushing the levels back…
Ethereum (ETH) price experienced a similar volatility to Bitcoin (BTC) in the past 24 hours,…
After a major downfall in the relationship between the two most powerful pro-crypto individuals, Elon…
Eric Trump, the Executive Vice President of the Trump Organization, has announced a strategic partnership…
