Definition of Bollinger Bands
A technical indicator consisting of a moving average (middle band) and two standard deviation bands above and below it. Used to measure volatility and identify overbought/oversold conditions.
At a glance
Example
Apply the definition: restate “Bollinger Bands” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “Bollinger Bands” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Bollinger Bands” page and reopen it when reading broker specs so definitions stay consistent.