bollinger bands strategy

The Bollinger Bands strategy is a popular technical analysis tool used by traders to identify potential entry and exit points in the market. It involves using the Bollinger Bands indicator. Which consists of a moving average line surrounded by upper and lower bands representing standard deviations. Traders typically look for price action near the bands to determine potential trading opportunities. For instance, when prices touch or penetrate the outer bands. It may indicate overbought or oversold conditions. Suggesting a possible reversal in the trend. Additionally, the width between the bands can signal the level of volatility in the market, with wider bands indicating higher volatility and narrower bands indicating lower volatility.