What are Bollinger Bands?

Bollinger Bands are a type of statistical chart characterizing the prices and volatility over time of a financial instrument or commodity.

How do I use Bollinger Bands?

Bollinger Bands can be used to identify potential overbought or oversold conditions in a market.

Bollinger Bands Calculator

This calculator is designed for traders and analysts to compute the Bollinger Bands for a given set of data. Bollinger Bands are used to measure market volatility and are a valuable tool in technical analysis.

Calculator

Enter Closing Prices (comma-separated)

Period (Number of Days)

Standard Deviation Multiplier

Results

Upper Band: $0.00

Lower Band: $0.00

Middle Band: $0.00

Data Source and Methodology

All calculations are based on the widely accepted Bollinger Bands formula. For more details on the application of Bollinger Bands, please visit iForex Education Center. All calculations adhere strictly to the methodologies outlined therein.

The Formula Explained

Bollinger Bands: Middle Band = SMA(N), Upper Band = SMA(N) + (K * StdDev), Lower Band = SMA(N) - (K * StdDev)

Glossary of Variables

Closing Prices: The end-of-day prices for a given period.
Period: Number of days over which to calculate the moving average.
Standard Deviation Multiplier: The multiplier applied to the standard deviation to calculate the bands.

Frequently Asked Questions (FAQ)

How are Bollinger Bands calculated?

Bollinger Bands are calculated using a simple moving average and the standard deviation of the asset's price over a specified period.

What do Bollinger Bands indicate?

They indicate market volatility and can signal potential overbought or oversold conditions.

Tool developed by Ugo Candido.
Last reviewed for accuracy on: October 20, 2023.