forex4caster

Bollinger BandsBollinger Bands are a type of envelope that are plotted at standard deviation levels above and below a moving average. This produces an effect of having the bands widen during periods of higher volatility and contract during less volatile periods. Bollinger bands allow for an understanding of changes in supply and demand for the underlying security as a quick view. During periods of lower volatility, in sideways moving markets, the bands contract toward the moving average. When the market is in a period of indecision, between major news or prior to the maturing of market perception