Bollinger Bands holds a key importance in technical analysis of the market or any particular stock. It is important to note that Bollinger Bands are like moving average envelopes and these are plotted at standard deviation levels above and below a moving average and this moving average can be varying as per an individual style of the investment. Moreover these bands are self-adjusting i.e these bands becomes wide during volatile markets and contracts during calmer periods.
Tight Bollinger Bands means that a large up move or down move is offing i.e a breakout can take place which can be either side. Thus it makes sense to track the Bollinger Bands to avoid being caught offguard.
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