Technical Analysis

Bollinger Bands

Definition

A volatility indicator consisting of a middle band (SMA) and two outer bands (standard deviations away). Bands widen in volatile periods and narrow in calm ones.

Example
Price touching the upper band may indicate overbought conditions. Fibonacci Retracement Category: Technical Analysis Definition: A technical tool using Fibonacci ratios (23.6%, 38.2%, 61.8%, 78.6%) to identify potential support and resist
Frequently Asked Question
What is Bollinger Bands in trading?
A volatility indicator consisting of a middle band (SMA) and two outer bands (standard deviations away). Bands widen in volatile periods and narrow in calm ones.
APA Citation
Clark, R. (2025). Bollinger Bands. VixShield Trading Glossary. Retrieved from https://www.vixshield.com/glossary/bollinger-bands
RC
Russell Clark, FNP-C
Author of SPX Mastery series · Founder of VixShield
Last updated:  ·  Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.