Bollinger Bands (BB)

What are Bollinger Bands?

If you're looking to study the potential volatility of a stock, one of the main indicators you'll run into are the Bollinger bands. Bollinger bands are two lines that are charted two standard deviations away from the moving average. BB attempts to adjust to market conditions by widening when times are volatile and contracting when things are calm.

Bollinger Bands were introduced by John Bollinger in the early 1980s. Bollinger Bands are a leading indicator especially when people attempt to be predictive.

For more information, visit WikiPedia Bollinger Bands page.