What are Bollinger Bands?

Bollinger bands are one of the indicators most used by market operators to compare the volatility of the price of any asset and the relative value of its price over a period of time.

This indicator consists of three bands that are drawn superimposed on the price evolution chart.

✅The central band is a moving average, normally a simple moving average calculated with 20 periods is used.

✅The upper band is calculated by adding 2 times the standard deviation of the moving average to the value of the simple moving average.

✅The lower band is calculated by subtracting 2 times the standard deviation of the moving average from the simple moving average.