Bollinger bands indicator was developed by John Bollinger, Bollinger bands are an indicator that allows users to compare volatility and relative price levels over a period. Because standard deviation is a measure of volatility. Bollingger bands adjust themselves to market conditions. When the markets become more volatile, the bands widen (move further away from the average) and during less volatile periords, the bands contract (move closer to the average).
It’s among one of the most popular technical analysis techniques. The closer the prices move to the upper band, the more overbought the market and the closer the prices move to the lower band, the more oversold ther market.
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