$SHELL | Band Width Is Just Another Word for "How Much It's Moving"
The gap between a Bollinger Band's upper and lower line has a name, band width, and it answers a specific question: how much has this asset's price actually been swinging around lately, on this particular timeframe.
On SHELL's 1-hour chart, that gap is currently about 3.45% of the lower band, pretty tight. Zoom out to the weekly chart, and the same kind of gap balloons to about 67.63%. Same coin, same moment, very different numbers, because the weekly calculation looks at a much longer stretch of price history instead of a handful of hours.
A wider band width doesn't automatically mean "more dangerous." It means more price movement has occurred within the specific window being measured.
#SHELL #CryptoTips #MarketVolatility
The gap between a Bollinger Band's upper and lower line has a name, band width, and it answers a specific question: how much has this asset's price actually been swinging around lately, on this particular timeframe.
On SHELL's 1-hour chart, that gap is currently about 3.45% of the lower band, pretty tight. Zoom out to the weekly chart, and the same kind of gap balloons to about 67.63%. Same coin, same moment, very different numbers, because the weekly calculation looks at a much longer stretch of price history instead of a handful of hours.
A wider band width doesn't automatically mean "more dangerous." It means more price movement has occurred within the specific window being measured.
#SHELL #CryptoTips #MarketVolatility