Bollinger Band Trading -

: A 20-period Simple Moving Average (SMA) that acts as the baseline.

: The middle band minus two standard deviations. It often marks potential "oversold" areas. Three Primary Trading Strategies Go to product viewer dialog for this item.

Bollinger Bands are a versatile volatility indicator developed by John Bollinger in the 1980s. They consist of three lines that "breathe" with the market, expanding when volatility increases and contracting when it decreases.

: The middle band plus two standard deviations . It often marks potential "overbought" areas.