Bollinger bands (BBANDS) also builds on top of moving averages, but incorporates recent price volatility that makes the indicator more adaptive to different market conditions. Let's now discuss this in greater detail.
Bollinger bands is a well-known technical analysis indicator developed by John Bollinger. It computes a moving average of the prices (you can use the simple moving average or the exponential moving average or any other variant). In addition, it computes the standard deviation of the prices in the lookback period by treating the moving average as the mean price. It then creates an upper band that is a moving average, plus some multiple of standard price deviations, and a lower band that is a moving average minus ...
