what is bollinger band

what is bollinger band are a widely  technical analysis tool in trading, developed by John Bollinger. They consist of a moving average line accompanied by upper and lower bands that represent standard deviations of price volatility. These bands expand and contract based on market volatility. Providing traders with insights into potential price reversals or continuation patterns. When prices touch or cross the upper band. It may indicate an overbought condition, suggesting a possible reversal to the downside. Conversely, when prices touch or cross the lower band. It may signal an oversold condition, indicating a potential reversal to the upside. Traders often use Bollinger Bands to identify trading opportunities, set profit targets, and manage risk effectively. Understanding how to interpret Bollinger Bands can enhance traders’ ability to make informed decisions and navigate dynamic market conditions with confidence.