Bollinger Bands
"Bollinger bands are an oscillator indicator, used to measure price volatility. They help you identify whether a price is high or low compared to its recent moving average and predict when it might fall or rise back to that level."
The Bollinger bands indicator is an oscillating indicator and is used to measure how volatile a market is.
They help you identify whether a price is relatively high or low compared to its recent average and predict when it might rise or fall back to that level. This will help you decide when to buy or sell an asset.
Bolling Bands show overbought and oversold markets
Overbought
When the price reaches the upper band, the asset is trading at a relatively high price and is considered overbought. You could now look to sell the asset on the expectation that its price will fall back towards the central moving average band.
Oversold
When a price approaches the lower band, the asset is trading at a relatively low price and is considered oversold. You could now look to buy the asset on the expectation that the price will go back towards the central moving average band.
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