Bollinger Bands Explained Simply
7/6/2026
indicators
technical
guide
John Bollinger's bands wrap a 20-period MA with plus/minus 2 standard deviations — a volatility envelope that breathes with the market.
Level by level
Beginner
Bands squeeze when the market is quiet and expand when it moves. A 'squeeze' often precedes a big move — direction unknown.
Intermediate
Touching a band is NOT a signal by itself: in trends, price 'walks the band'. Mean-reversion band trades belong in ranges; breakout trades belong after squeezes.
Advanced
PercentB and bandwidth quantify position and squeeze depth. Combine squeeze + volume expansion + structure break for the highest-quality volatility-cycle entries.
Common mistakes
- Selling every touch of the upper band in an uptrend
- Trading the squeeze before the market picks a direction
Practise & tools
_Educational content only — not financial advice. Historical behaviour never guarantees future results._
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