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Bollinger Band

What is the definition of Bollinger Band?

Bollinger Bands are a volatility indicator that are used to measure the current price of a security relative to previous trading periods.

In calculating a Bollinger Band the 'period' (number of days, weeks, months) must be defined in order to calculate a moving average from which is defined

  • an upper band at a multipe of standard deviations above the MA
  • a lower band at the same multiple of standard deviations below the MA.

Stockopedia explains Bollinger Band...

Stockopedia's chart package default uses a 20 period Bollinger Band with a 2 Standard Deviation Width.

A full definition of Bollinger Bands is available at Wikipedia

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