Bollinger Bands
Volatility bands with squeeze detection — see when big moves are coming
Uses & Examples
When to Use This Tool
- Detecting "squeezes" — tight bands signal a big move is coming
- Finding overbought/oversold conditions when price touches the bands
- Mean reversion trades — buy at lower band, sell at upper band in ranges
- Breakout confirmation — price closing outside the band with volume
Worked Example
Worked Example
20-period SMA: $110.00 | Standard deviation: $3.50
Upper band: $110 + (2 × $3.50) = $117.00
Lower band: $110 - (2 × $3.50) = $103.00
Bandwidth 12.7% — normal volatility. Price at $115 in the upper half — bullish lean.