Developed in the 1980s by financial analyst John Bollinger, the bands appear on stock charts as three lines that move with the price. The center line is the stock price's 20-day simple moving ...

The above chart shows the Bollinger Bands for General Motors’ (GM) stock. Calculating Bollinger Bands. Center line = 20-day simple moving average (or SMA) ...

The Bollinger Band® is a strategy that has become one of the most useful tools for spotlighting extreme short-term ... Line Chart: Definition, Types, and Examples. Average True Range (ATR ...

As typically formulated, the three lines that constitute the Bollinger Bands are derived from a stock’s simple moving average—the middle line—usually 20 closing periods.

A Bollinger Band, Multiple Timeframe Analysis, uses Bollinger Bands on different timeframes (e.g., daily and hourly charts) to gain a broader market perspective and identify potential trade setups.

When the distance between the upper and lower Bollinger Bands is very small compared to the middle line (less than 5%), it usually signals a tight squeeze, meaning a big move could be coming.

The centerline of the Bollinger Bands and the SMA is represented by the middle line. Plotting the upper and lower bands above and below the SMA creates a channel that encircles the price chart ...