Bollinger Bands
a.k.a. BB
A moving average with two bands drawn above and below it, spaced by standard deviation, that widen and narrow with volatility.
Bollinger Bands, created by John Bollinger, wrap price in a flexible tube. The middle line is usually a 20-period moving average; the outer bands sit two standard deviations above and below it.
When the market goes wild, the bands balloon apart; when it goes quiet, they pinch together in a 'squeeze', which often comes before a big move. Some traders treat touches of the outer bands as stretched prices in a range. In a strong trend, though, price can ride a band for a long time.
Selling every touch of the upper band. In a powerful uptrend, price can hug that band for days.
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