Investing Dictionary
Charts

What is Bollinger Bands?

Lines around a stock's price showing its normal range

Full Explanation

Bollinger Bands are three lines: a moving average in the middle, and two bands above and below based on volatility. When a stock touches the upper band, it may be overbought. Lower band = potentially oversold.

Pro Tip

When the bands squeeze tight, a big move is often coming soon.

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