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Bollinger Bands
Technical Analysis
Bollinger Bands are two bands drawn 2 standard deviations above and below a 20-period moving average of price.
They widen as volatility rises and narrow as it falls. A pronounced narrowing (a squeeze) is read as a sign that a sharp move may follow a quiet period, but it does not say in which direction. Price touching the upper band is not on its own a sell signal, nor is touching the lower band on its own a buy signal.
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