Bollinger Bands – one of the most popular indicators reflecting market volatility. It shows the dynamic range of price movement and helps identify the start and end of trends.
🟢 How to Use:
BB Width – an oscillator measuring the distance between the upper and lower bands. During high volatility, the distance increases, and during low volatility, it decreases.
✔️ High Volatility: A large distance between the bands indicates a potential momentum.
✔️ Low Volatility: A narrow distance signals consolidation and a potential upcoming movement.
⚠️ High or low volatility alone is not a buy or sell signal. It is a supplementary indicator that should be used alongside other tools and methods of analysis.
❗️BB Width forms a single line below the price chart, so it should not be used as a support/resistance level like regular Bollinger Bands.
💡 Approach trading holistically, combine indicators, and always consider risk management!
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