Developed by John Bollinger, Bollinger Bands are an indicator that allows users to compare volatility and relative price levels over a period time. The indicator consists of three bands.
The middle line is the simple moving average, normally set as a period of 20 (number of bar/ticks in a given time period), and is used as a base to create upper/lower bands.
The upper band is the middle band added to the given deviation multiplied by a given period moving average.
The lower band is the middle band subtracted by the given deviation multiplied by a given period moving averages.
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