TRADING WITH BOLLINGER BANDS

摘要

Popularized by John Bollinger, Bollinger Bands describe the technique of applying a relatively common statistical measure to the markets. In layman's terms, they can be thought of as "volatility bands" charted above and below a moving average. They widen during periods of larger price changes and narrow during times of small price changes. Bollinger Bands are similar to moving average envelopes, but the difference between Bollinger Bands and moving average envelopes is envelopes are plotted at a fixed percentage above and below a moving average. In the case of Bollinger Bands, the volatility measure is standard deviation, a term known well by anyone who has taken a rudimentary statistics course. Bollinger bands are drawn within and surrounding the price structure of a trading instrument. They provide relative boundaries of highs and lows.