Bollinger Bands Intro

Learn Bollinger Bands Intro — part of our Volatility & ATR series on Trading Bite. Free trading education for Pakistan, India & Gulf traders. Educational use only; not financial advice.

Volatility bands around price

Bollinger Bands = middle band (usually 20 SMA) plus upper/lower bands at ±2 standard deviations. Bands widen in volatile periods, contract in quiet periods.

  • Price at upper band — strong relative to recent range (not automatic sell).
  • Squeeze — bands narrow; volatility expansion sometimes follows.
Narrow bands = squeeze · Module 7 breakouts may follow

Use with Module 6–7 context — bands alone are not a complete system.