Bollinger Bands
Updated 2026-09-20
Definition
A moving average (usually 20 periods) with two bands at 2 standard deviations above and below.
Why it matters
They widen with volatility and narrow in calm moments: a squeeze often precedes an expansion, without indicating direction.
Practical example
Very tight bands on EUR/USD H1: a volatility expansion is likely in the following hours.
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Educational content, not financial advice. Trading involves risk.