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Bollinger Bands Indicator and Price Volatility

During periods of high price volatility, prices tend to deviate significantly from the moving average. Consequently, Bollinger Band width expands, accommodating 95% of potential price movements within its mean range.

Bollinger Bands indicator will widen as price volatility widens. This will show as the bollinger band bulges around the trading price. When the trading bollinger bands widen like this it's a continuation pattern and trading market will continue heading and going in this direction. This is normally a continuation trade signal.

The Bollinger Bands example below explains and shows the Bollinger bulge.

High Price Volatility

High Price Volatility - Bollinger Band - Bollinger Bands Bulge

Low volatility narrows prices around the moving average. The band squeezes to fit 95% of moves near the center.

Low price swings mean prices consolidate. They wait for a breakout. Sideways Bollinger Bands signal? Stay out. Skip stock trades.

The Bollinger bands indicator examples is illustrated beneath when the bollinger bands narrowed.

Low Price Volatility Explained - Understanding Bollinger Bands and Price Volatility in Low to High Markets

Low Price Volatility - Bollinger Band - Bollinger Band Squeeze

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