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
Term
Bollinger Bands
URL slug
bollinger-bands
Category
Analysis
Short answer
A technical indicator consisting of a moving average (middle band) and two standard deviation bands above and below it.
Deep dives
Full A–Z glossary
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.
Practice tools:
Related terms
FAQ
A technical indicator consisting of a moving average (middle band) and two standard deviation bands above and below it.
Knowing the precise definition of “Bollinger Bands” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “Bollinger Bands” as loose slang while your broker/platform specification defines it more narrowly.