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Technical Analysis

What Is Bollinger Bands?

Definition and plain-English explanation of "Bollinger Bands"

Bollinger Bands — Technical Analysis illustration

Bollinger Bands are a technical indicator made of a moving average with two bands plotted two standard deviations above and below it. The bands widen when volatility rises and contract when it falls. Prices touching the upper band may signal overbought conditions, while the lower band may signal oversold conditions.

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