Bollinger Bands
Bollinger Bands are yet another technical indicator. Yes, there are thousands of them. This one is named after its inventor and indicates a range for the price of a financial security. It consists of three parts:
- A Simple Moving Average.
- An upper band of two standard deviations above this moving average—the standard deviation is derived from the same data with which the moving average is calculated.
- A lower band of two standard deviations below the moving average.
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