Bollinger bands consist of three lines: the upper line (upper band), the lower line (lower band), and the middle line which repr
15 Sep 2023, 15:19
Bollinger bands consist of three lines: the upper line (upper band), the lower line (lower band), and the middle line which represents the simple moving average. The tool functions the same way as a normal distribution with standard deviations used to determine volatility swings.
Bollinger bands are typically used to find entry and exit points. The weakness of this tool is that it only considers price volatility while taking no notice of other relevant factors in a trade.