Check Out The Short Guide on Bollinger Bands®

Published by

Qadir AK

November 9, 2018

Wintermute CEO warns crypto losing cypherpunk vision

Bollinger Bands®

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.

What to Look for?

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

Also Read: Tips For Beginner Day Trader In Cryptocurrencies

Trust with CoinPedia:

CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.

Investment Disclaimer:

All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.