$SHELL | Band Width Is Just Another Word for "How Much It's Moving"
The distance between the upper and lower lines of the Bollinger Bands has its own name, band width, and it answers a specific question: how much has this asset been fluctuating recently over that particular time frame?
On SHELL's 1-hour chart, that distance is currently only about 3.45% relative to the lower band, which is quite narrow. Zoom out to the weekly chart, and the same kind of distance expands to about 67.63%. The same coin, at the same moment, but two very different figures, because the weekly calculation looks at a much longer history of prices than just a few hours.
A greater band width does not automatically mean "more dangerous." It simply shows the level of volatility over the specific period being measured.
#SHELL #MarketVolatility #BandWidth
The distance between the upper and lower lines of the Bollinger Bands has its own name, band width, and it answers a specific question: how much has this asset been fluctuating recently over that particular time frame?
On SHELL's 1-hour chart, that distance is currently only about 3.45% relative to the lower band, which is quite narrow. Zoom out to the weekly chart, and the same kind of distance expands to about 67.63%. The same coin, at the same moment, but two very different figures, because the weekly calculation looks at a much longer history of prices than just a few hours.
A greater band width does not automatically mean "more dangerous." It simply shows the level of volatility over the specific period being measured.
#SHELL #MarketVolatility #BandWidth