Indicator Notes | $UNI | Daily Bollinger Bands | After narrowing for 10 days, price once broke upward | Current price 7.607 has returned inside the bands
First, the definition: Bollinger Bands were developed by John Bollinger and consist of three lines: the middle band is a 20-period moving average, the upper band is the middle band plus 2 standard deviations, and the lower band is the middle band minus 2 standard deviations.
A common interpretation: When the price returns between the upper and lower bands, it is often seen as a sign that the breakout lacked momentum, leading many people to place less confidence in the signal.
The same reading can mean very different things in different market conditions, so don’t apply a rule of thumb mechanically.
First, the definition: Bollinger Bands were developed by John Bollinger and consist of three lines: the middle band is a 20-period moving average, the upper band is the middle band plus 2 standard deviations, and the lower band is the middle band minus 2 standard deviations.
A common interpretation: When the price returns between the upper and lower bands, it is often seen as a sign that the breakout lacked momentum, leading many people to place less confidence in the signal.
The same reading can mean very different things in different market conditions, so don’t apply a rule of thumb mechanically.