The Bollinger Bands indicator is one of those indicators that work well as a trend indicator and as a non-trending indicator. The bands were developed by John Bollinger. They consist of 3 lines. The middle line of the band is a simple moving average that is commonly set at a period of 20. The outer bands are commonly set at 2 standard deviations from the simple moving average line. This means that about 95.4% of the time, the price will stay contained within the outer bands. The Bollinger Bands can […]