Bollinger

Bollinger Bands are a technical analysis tool used to gauge market volatility and potential price movements. They consist of three lines: a middle line representing a simple moving average (average price over a period), and two outer bands set a certain number of standard deviations above and below this average. When prices move closer to the upper band, the asset may be overbought; when near the lower band, it might be oversold. The bands expand during high volatility and contract when the market is calmer, helping traders identify potential buy or sell signals.