{"id":3183,"date":"2018-11-25T15:03:02","date_gmt":"2018-11-25T15:03:02","guid":{"rendered":"https:\/\/www.wasteyourtime.co\/?page_id=3183"},"modified":"2020-07-22T12:49:21","modified_gmt":"2020-07-22T11:49:21","slug":"bollinger-bands","status":"publish","type":"page","link":"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/","title":{"rendered":"Bollinger Bands"},"content":{"rendered":"<h4><b>DEFINITION of Bollinger bands<\/b><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Bollinger bands are a popular form of technical price indicator.\u00a0They are a technical analysis indicator. And derived from the standard Bollinger Bands indicator.\u00a0<\/span><\/p>\n<h4><b>WHAT IT IS IN ESSENCE<\/b><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It is a set of lines which are show two standard deviations. The deviations can be positive and negative. It is away from a simple moving average of the security&#8217;s price.\u00a0The pioneering technical trader, John Bollinger, developed them in the 1980s.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Bollinger bands comprise a market\u2019s moving average. And do that with an upper and lower price channel either side of it. Each price channel (or band) represents the standard deviation away from the moving average of the market. <\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">As a market becomes volatile, its Bollinger bands will expand (it is called expansion). As it flattens out they will contract (contraction). In this way, they enable traders to see beyond short-term volatility and gain insight into longer price movements.<\/span><\/p>\n<p style=\"text-align: justify;\">They are a volatility indicator that creates a band of three lines. They are plotted in relation to a security&#8217;s price. The Middle Line is typically a 20 Day Simple Moving Average.<\/p>\n<p style=\"text-align: justify;\">How does it work? They are volatility bands with location above and below a moving average.<\/p>\n<p style=\"text-align: justify;\">Volatility is obvious in the standard deviation. As volatility increases and decreases, deviation changes. The bands automatically expand when volatility increases. And narrow when volatility decreases. This dynamic nature of Bollinger Bands also means that traders can use them on different securities with the standard settings.<\/p>\n<p style=\"text-align: justify;\">As it is said, moves that touch or exceed the bands are not signals, but rather \u201ctags\u201d. On the face of it, a move to the upper band shows strength. While a sharp move to the lower band shows weakness. Momentum oscillators work much the same way.<\/p>\n<h4><b>HOW TO USE<\/b><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The use of this form of technical price indicator can also indicate whether a market&#8217;s direction is into the overbought or oversold field. Say, a market\u2019s price continually moves outside the upper parameters of a Bollinger band. It can be considered to be overbought.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">And when it moves below the lower band it could be considered oversold. <\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">While very useful to a lot of traders, but they are not infallible. They only work with a thorough understanding of how fundamental and technical analysis works with markets.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>DEFINITION of Bollinger bands Bollinger bands are a popular form of technical price indicator.\u00a0They are a technical analysis indicator. And derived from the standard Bollinger Bands indicator.\u00a0 WHAT IT IS IN ESSENCE It is a set of lines which are show two standard deviations. The deviations can be positive and negative. It is away from [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":6825,"parent":3012,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"content-type":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"class_list":["post-3183","page","type-page","status-publish","has-post-thumbnail","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bollinger Bands | Financial Dictionary | Traders Paradise<\/title>\n<meta name=\"description\" content=\"Bollinger bands comprise a market\u2019s moving average, with an upper and lower price of it. They are a popular form of technical price indicator.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bollinger Bands | Financial Dictionary | Traders Paradise\" \/>\n<meta property=\"og:description\" content=\"Bollinger bands comprise a market\u2019s moving average, with an upper and lower price of it. They are a popular form of technical price indicator.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/\" \/>\n<meta property=\"og:site_name\" content=\"Traders-Paradise\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/TradersParadisecom\" \/>\n<meta property=\"article:modified_time\" content=\"2020-07-22T11:49:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/03\/bollinger-bands-2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"860\" \/>\n\t<meta property=\"og:image:height\" content=\"300\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@Traders_Paradis\" \/>\n<meta name=\"twitter:label1\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/\",\"url\":\"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/\",\"name\":\"Bollinger Bands | Financial Dictionary | Traders Paradise\",\"isPartOf\":{\"@id\":\"https:\/\/traders-paradise.com\/magazine\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/03\/bollinger-bands-2.jpg\",\"datePublished\":\"2018-11-25T15:03:02+00:00\",\"dateModified\":\"2020-07-22T11:49:21+00:00\",\"description\":\"Bollinger bands comprise a market\u2019s moving average, with an upper and lower price of it. They are a popular form of technical price indicator.\",\"breadcrumb\":{\"@id\":\"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/#primaryimage\",\"url\":\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/03\/bollinger-bands-2.jpg\",\"contentUrl\":\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/03\/bollinger-bands-2.jpg\",\"width\":860,\"height\":300,\"caption\":\"Bollinger bands\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/traders-paradise.com\/magazine\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Trading Dictionary\",\"item\":\"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"B\",\"item\":\"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"Bollinger Bands\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/traders-paradise.com\/magazine\/#website\",\"url\":\"https:\/\/traders-paradise.com\/magazine\/\",\"name\":\"Traders-Paradise\",\"description\":\"Talking Algo Trader\",\"publisher\":{\"@id\":\"https:\/\/traders-paradise.com\/magazine\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/traders-paradise.com\/magazine\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/traders-paradise.com\/magazine\/#organization\",\"name\":\"Traders-Paradise\",\"url\":\"https:\/\/traders-paradise.com\/magazine\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/traders-paradise.com\/magazine\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/07\/cropped-TP-Full-Landscape-transparent.png\",\"contentUrl\":\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/07\/cropped-TP-Full-Landscape-transparent.png\",\"width\":3816,\"height\":1402,\"caption\":\"Traders-Paradise\"},\"image\":{\"@id\":\"https:\/\/traders-paradise.com\/magazine\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/TradersParadisecom\",\"https:\/\/x.com\/Traders_Paradis\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Bollinger Bands | Financial Dictionary | Traders Paradise","description":"Bollinger bands comprise a market\u2019s moving average, with an upper and lower price of it. They are a popular form of technical price indicator.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/","og_locale":"en_GB","og_type":"article","og_title":"Bollinger Bands | Financial Dictionary | Traders Paradise","og_description":"Bollinger bands comprise a market\u2019s moving average, with an upper and lower price of it. They are a popular form of technical price indicator.","og_url":"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/","og_site_name":"Traders-Paradise","article_publisher":"https:\/\/www.facebook.com\/TradersParadisecom","article_modified_time":"2020-07-22T11:49:21+00:00","og_image":[{"width":860,"height":300,"url":"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/03\/bollinger-bands-2.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_site":"@Traders_Paradis","twitter_misc":{"Estimated reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/","url":"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/","name":"Bollinger Bands | Financial Dictionary | Traders Paradise","isPartOf":{"@id":"https:\/\/traders-paradise.com\/magazine\/#website"},"primaryImageOfPage":{"@id":"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/#primaryimage"},"image":{"@id":"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/#primaryimage"},"thumbnailUrl":"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/03\/bollinger-bands-2.jpg","datePublished":"2018-11-25T15:03:02+00:00","dateModified":"2020-07-22T11:49:21+00:00","description":"Bollinger bands comprise a market\u2019s moving average, with an upper and lower price of it. They are a popular form of technical price indicator.","breadcrumb":{"@id":"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/#primaryimage","url":"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/03\/bollinger-bands-2.jpg","contentUrl":"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/03\/bollinger-bands-2.jpg","width":860,"height":300,"caption":"Bollinger bands"},{"@type":"BreadcrumbList","@id":"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/bollinger-bands\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/traders-paradise.com\/magazine\/"},{"@type":"ListItem","position":2,"name":"Trading Dictionary","item":"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/"},{"@type":"ListItem","position":3,"name":"B","item":"https:\/\/traders-paradise.com\/magazine\/trading-dictionary\/b\/"},{"@type":"ListItem","position":4,"name":"Bollinger Bands"}]},{"@type":"WebSite","@id":"https:\/\/traders-paradise.com\/magazine\/#website","url":"https:\/\/traders-paradise.com\/magazine\/","name":"Traders-Paradise","description":"Talking Algo Trader","publisher":{"@id":"https:\/\/traders-paradise.com\/magazine\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/traders-paradise.com\/magazine\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"https:\/\/traders-paradise.com\/magazine\/#organization","name":"Traders-Paradise","url":"https:\/\/traders-paradise.com\/magazine\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/traders-paradise.com\/magazine\/#\/schema\/logo\/image\/","url":"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/07\/cropped-TP-Full-Landscape-transparent.png","contentUrl":"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/07\/cropped-TP-Full-Landscape-transparent.png","width":3816,"height":1402,"caption":"Traders-Paradise"},"image":{"@id":"https:\/\/traders-paradise.com\/magazine\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/TradersParadisecom","https:\/\/x.com\/Traders_Paradis"]}]}},"_links":{"self":[{"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/pages\/3183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/comments?post=3183"}],"version-history":[{"count":1,"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/pages\/3183\/revisions"}],"predecessor-version":[{"id":24230,"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/pages\/3183\/revisions\/24230"}],"up":[{"embeddable":true,"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/pages\/3012"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/media\/6825"}],"wp:attachment":[{"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/media?parent=3183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}