Technical analysis · Intermediate

Bollinger Bands

A 1-minute lesson from the MarketPro academy, one of 26 in technical analysis.

Last reviewed 15 September 2026 by the MarketPro research desk · Editorial policy

Short answer

Bollinger Bands plot a moving average with two bands above and below it, spaced by a multiple of the price's standard deviation, creating a dynamic envelope that expands and contracts with volatility. The middle band is usually a 20-period simple moving average, with the upper and lower bands typically set two standard deviations away.

The middle band is usually a 20-period simple moving average, with the upper and lower bands typically set two standard deviations away. Because standard deviation reacts to volatility, the bands widen during turbulent conditions and narrow during quiet periods.

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The squeeze: A period of tightening bands reflects low volatility and is often watched as a setup for a potential larger move, though the direction is not indicated by the squeeze itself.
Band touches: Price reaching the upper or lower band is not automatically a sell or buy signal; in strong trends price can "walk the band" for extended stretches.
Mean reversion context: In range-bound markets, moves toward a band are more often watched for a possible reversion toward the middle line.

Bollinger Bands are best read alongside trend and volume context rather than as a standalone timing tool, since volatility expansion can resolve in either direction and using the bands in isolation can lead to premature entries against a strong trend.

Lesson 11 of 26 in Technical analysis

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Written and reviewed by the MarketPro research desk

MarketPro is a trading-signal and trading-education app operated by Harajuku Holdings LTD (Cyprus). Our signal desk publishes and tracks every trade idea in-app, and every page here is checked against the app's live behaviour before publishing. Last reviewed 15 September 2026. How we produce signals and content · About MarketPro

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