Bollinger Bands Indicator

What are Bollinger Bands?

Bollinger Bands consist of a central moving average with upper and lower bands plotted at a defined number of standard deviations.

• Bands expand during high volatility.
• Bands contract during low volatility.

How They Work

• Middle Band: Simple Moving Average (SMA).
• Upper Band: SMA + (Standard Deviation × Multiplier).
• Lower Band: SMA − (Standard Deviation × Multiplier).

Available Settings

• Period: Lookback for SMA (default 20).
• StdDev: Standard deviation multiplier (default 2.0).
• Source: Price input for calculation.
• Colors: Custom for each band.

Best Practices

• Narrow bands often precede large breakouts.
• Price touching outer band can indicate overbought/oversold zones.
• Combine with RSI for signal confirmation.

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