Bollinger Bands

Measuring volatility

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In this lesson

Read Bollinger Bands as a volatility gauge: squeezes, expansions and walking the band.

Key takeaways

Bollinger Bands = 20-period average ± 2 standard deviations.
Narrow bands (a squeeze) show low volatility, which often comes before a big move.
The squeeze does not tell you the direction.
In strong trends price can ride along a band; a touch is not a signal by itself.

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