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What Are Bollinger Bands and How Are They Read?

In short: Bollinger Bands default to a 20-period simple moving average with bands two standard deviations above and below, which widen when volatility rises and narrow when it falls[1].

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What are Bollinger Bands?

A volatility indicator made of a 20-period moving average in the middle and two bands placed two standard deviations above and below it.

What does band width say?

When the bands narrow, volatility is low and a sharp move may follow the squeeze. When they widen, volatility has increased.

Touching the upper or lower band

A touch of the upper band is not a sell signal by itself; in strong trends price can walk along the band. In sideways markets a return to the average is more common.

Combine with other indicators

RSI divergence, volume and support/resistance levels reduce false signals.

Source note

John Bollinger developed Bollinger Bands; the default is a 20-period simple moving average with bands two standard deviations above and below, which widen when volatility rises and narrow when it falls[1].

Limits

The bands show volatility, not direction. This page is educational, not investment advice.

Frequently asked questions

What are the default Bollinger Band settings?
In the bands developed by John Bollinger, the default is a 20-period simple moving average with bands two standard deviations above and below[1].
What happens when the bands widen?
The bands widen when volatility rises and narrow when it falls[1].

Related guides

Sources

  1. Bollinger Bands. StockCharts ChartSchool. Accessed: 2026-10-22.

Source links were compared with the page content before publication; principles: Editorial Principles