Bollinger Bands measure market volatility using three lines plotted around a moving average.

• A middle band (moving average)
• An upper band
• A lower band

What do Bollinger Bands indicate?

The distance between the bands expands when volatility increases and contracts when volatility decreases.

• Price touching the upper band may indicate strong upward momentum.
• Price touching the lower band may indicate downward momentum.

How it is used in indicator triggers

Bollinger Bands can be used to detect volatility changes or price movement relative to the bands.

• Price crossing above or below the bands
• Comparing band values with other indicators