Bollinger Bands are statistical charts showing price and volatility over time. Created by John Bollinger in 1980s using moving averages and standard deviations. Default parameters are 20-day moving average and 2 standard deviations
Moving averages smooth prices and estimate underlying trends. SMA is most common, EMA has less lag than SMA. WMA gives higher weights to recent prices for smoother calculation. Moving averages can be used as support/resistance and trend indicators
Created by John Bollinger in early 1980s to visualize volatility changes. Consists of three bands plotted relative to security prices. Middle line is 20-day Simple Moving Average (SMA). Upper and Lower Bands are typically 2 standard deviations from SMA
Five main moving averages: SMA, EMA, WMA, EWMA, and HMA. Moving averages show security's average value over set period. Simple SMA uses closing prices, EMA multiplies recent data. Weighted moving average assigns different weights to prices
Developed by John Bollinger in 1980s to gauge stock volatility. Consists of three lines: 20-day SMA center, two standard deviation bands. Bands widen with increased volatility and contract with stability