The following article on Bollinger Bands is the opinion of Optimus Futures.
Any movement in asset prices implies some level of volatility. If price is barely moving, volatility is still present but low. When price really gets moving, volatility increases. And when prices begin fluctuating up and down in jagged waves, whether trending or ranging, then volatility is high. But how might you measure whether price volatility has exceeded the average? After a large price move, at what point might prices have gone too far, implying a possible reversion to the average?
That’s what Bollinger Bands are designed to help measure.
What are Bollinger Bands?
Created by John Bollinger in the 1980s, Bollinger Bands are an indicator used to help monitor the volatility levels of a security’s price–be it a stock, futures contract,