Bollinger Bands

Bollinger Bands

Bollinger Bands are a technical analysis tool developed by John Bollinger in the 1980s. They consist of a simple moving average (SMA) line and two standard deviation bands, one above the SMA (upper band) and one below (lower band).

• Middle Band (SMA): Represents the average price over a specified time period (typically 20 days).
• Upper Band: Represents the SMA plus two times the standard deviation of the price.
• Lower Band: Represents the SMA minus two times the standard deviation of the price.

Bollinger Bands are used to identify potential overbought and oversold levels in the price of a security. When the price moves close to the upper band, it may indicate that the security is overbought, and when it moves close to the lower band, it may indicate that the security is oversold.

Traders often use Bollinger Bands in conjunction with other technical indicators to make trading decisions.

Recommendations

The stock price (169.89) is within the Bollinger Bands range, indicating it is in a normal trading range.

Disclaimer:

This is an educational/learning app designed to demonstrate the Bollinger Bands. It is not intended to provide investment advice or recommendations. Trading involves risks, and decisions should be made based on thorough research and understanding of the markets. Always consult with a qualified financial advisor before making any investment decisions.