Bollinger Band

Bollinger Bands are a technical analysis tool used to measure the volatility of a financial asset, such as a cryptocurrency. They consist of three bands: a simple moving average (middle band) and two standard deviation bands (upper and lower bands) plotted above and below the middle band.

The width of the Bollinger Bands expands and contracts based on the volatility of the asset, with wider bands indicating higher volatility and narrower bands suggesting lower volatility. Traders use Bollinger Bands to identify overbought and oversold conditions, as well as potential support and resistance levels. When the price touches or breaks through the upper band, it may signal an overbought condition, while a touch or break of the lower band may indicate an oversold condition.