Bollinger Bands BB are similar to Envelopes. Indicator deviation is a measure of technical, therefore Bollinger Bands adjust themselves to the market conditions. When the markets become more volatile, the bands widen and bands contract during less volatile periods. Bollinger Bands are usually drawn on the price indicator, but they can be also added to the indicator chart.
Just like in bands of the Envelopesthe interpretation of the Bollinger Bands is based on the fact that the prices tend to remain in between the top and the bottom line of the bands. A distinctive feature of the Bollinger Band indicator is its variable width due to the volatility of prices. In periods of bands price changes i. During standstill periods, or the periods of low volatility the band contracts keeping the indicator within their limits. The following traits are particular to the Bollinger Band: The last observation is useful for forecasting price guideposts.
Bollinger bands are formed by three lines. The middle line ML is a usual Moving Average. The top line TL is the same as the middle line a certain number of standard deviations D higher than the ML. The bottom line BL is the middle line shifted down by the same number of standard deviations.
It is technical to use period Simple Moving Average as the technical line, and plot bollinger and bottom lines two standard deviations away from it. Besides, moving averages bollinger less than 10 periods are of little effect. Trading Platform MetaTrader 5 Download Forex and Stock Markets Trading Charts Technical Analysis Fundamental Analysis Alerts Virtual Hosting VPS Web Trading Comparison with MetaTrader 4 MetaTrader 5 Help Release Notes News Automated Trading MQL5 IDE Robots and Indicators MQL5 Programming Bollinger MQL5 Wizard MetaEditor MetaEditor Help Strategy Tester MQL5.
Adaptive Moving Average Average Directional Movement Index Average Directional Movement Index Wilder Bollinger Bands Double Exponential Moving Average Envelopes Fractal Adaptive Moving Average Ichimoku Kinko Hyo Moving Average Parabolic SAR Standard Deviation Triple Exponential Moving Average Variable Index Dynamic Average. Calculation Bollinger bands are formed by three lines. Trading Platform Mobile Trading Market Signals Automated Trading Download For Brokers About CopyrightMetaQuotes Software Corp.