4xPiP

Introduction The Bollinger Band indicator is a popular technical analysis tool used in financial trading to gauge price volatility and identify potential price reversal points. It was developed by John Bollinger in the 1980s and has since become widely used by traders across various financial markets, including stocks, forex trading, commodities, and cryptocurrencies. The Bollinger Bands consist of three lines plotted on a price chart: Middle Band (SMA) : The middle band is a simple moving average (SMA) of the price over a specified period. The standard period used is typically 20, but traders can adjust this value based on their preferences and trading strategies. Upper Band (SMA + 2 x Standard Deviation) : The upper band is calculated by adding two times the standard deviation of the price over the same period as the middle band to the middle band's value. The standard deviation is a measure of volatility, and by adding it to the middle band, the upper band expands as volatilit