Overview: Bollinger Bands is a momentum oscillator that tracks a simple moving average of price and presents a range of likely trading within two standard deviations, one above and one below. The power of Bollinger Bands is in its revelation of price deviation and likelihood of retracement once the bandwidth is violated. This makes Bollinger Bands the single most essential probability and momentum tracking signal available.
Bollinger Bands has been described as a volatility tracking signal, or even as a measure of probability. However, it serves as a hybrid that tests momentum in a very specific manner. It identifies the level of high or low prices in comparison to the previous or typical price range. This makes the ...
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