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Trading glossary

What is Bollinger Bands?

IndicatorsIntermediate

Bollinger Bands are three lines on a chart: a middle SMA with upper and lower bands at two standard deviations. When price touches the upper band, it may be overbought; the lower band, oversold. Bands squeezing together often precede a big move.

Related terms: SMA Overbought Oversold Keltner Channel Volatility

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