Bollinger Bands

Bollinger Bands are a popular technical analysis tool in financial trading. Developed by John Bollinger. The tool consists of three lines: a simple moving average (SMA) in the middle. The two upper and lower bands are drawn at a distance equal to the standard deviation from the moving average. This helps traders identify overbought or oversold conditions in the market. At the same time, identify trends and price fluctuations. When the price approaches or crosses the upper band. It could signal overbought conditions. While the price approaching or surpassing the lower band may indicate oversold conditions. Bollinger Bands not only provide information about price trends but also help assess the level of volatility. Helps traders make smart and effective buying and selling decisions. Deep dive with Learn Crypto Trading