$UNI On the daily chart, the Bollinger Bands broke upward above the upper band (7.6392) about 10 days after contracting; bandwidth was 12.53% when they contracted.
Let’s unpack what this number means.
Bandwidth = (upper band − lower band) ÷ middle band. It measures volatility; when bandwidth shrinks to a relatively low level compared with recent readings, this is commonly called a contraction.
Before taking a leveraged position, first work out whether you can withstand the worst-case scenario, then consider what the indicator is saying.
Let’s unpack what this number means.
Bandwidth = (upper band − lower band) ÷ middle band. It measures volatility; when bandwidth shrinks to a relatively low level compared with recent readings, this is commonly called a contraction.
Before taking a leveraged position, first work out whether you can withstand the worst-case scenario, then consider what the indicator is saying.