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[Sitemap](https://medium.com/sitemap/sitemap.xml) [Open in app](https://rsci.app.link/?%24canonical_url=https%3A%2F%2Fmedium.com%2Fp%2F143938087d0e&~feature=LoOpenInAppButton&~channel=ShowPostUnderUser&~stage=mobileNavBar&source=post_page---top_nav_layout_nav-----------------------------------------) Sign up [Sign in](https://medium.com/m/signin?operation=login&redirect=https%3A%2F%2Fmedium.com%2F%40brianhulela%2Funderstanding-bollinger-bands-143938087d0e&source=post_page---top_nav_layout_nav-----------------------global_nav------------------) [Medium Logo](https://medium.com/?source=post_page---top_nav_layout_nav-----------------------------------------) [Write](https://medium.com/m/signin?operation=register&redirect=https%3A%2F%2Fmedium.com%2Fnew-story&source=---top_nav_layout_nav-----------------------new_post_topnav------------------) Sign up [Sign in](https://medium.com/m/signin?operation=login&redirect=https%3A%2F%2Fmedium.com%2F%40brianhulela%2Funderstanding-bollinger-bands-143938087d0e&source=post_page---top_nav_layout_nav-----------------------global_nav------------------)   ![]() Writing is for everyone.[Register for Medium Day](https://events.zoom.us/ev/Av7REBItl8l_9abuYg_Iyhrgx4cwt8FEGYhzPou4dCMBDIhOV8ZQ~AmiyQniI6sZwr3sSvUHXWMpdX5wpciIv0a3EWsjOm0kEgiush-6TTsavY_EhDomBRAK8a2foXpncjXcEQADVKgkbMA?source=---medium_day_banner-----------------------------------------) Member-only story # Trading Strategies: Bollinger Bands ## A Comprehensive Guide to Understanding and Using Bollinger Bands for Smarter Trading Decisions [](https://medium.com/@brianhulela?source=post_page---byline--143938087d0e---------------------------------------) [Brian Hulela](https://medium.com/@brianhulela?source=post_page---byline--143938087d0e---------------------------------------) Follow 5 min read · Nov 25, 2024 [Listen](https://medium.com/m/signin?actionUrl=https%3A%2F%2Fmedium.com%2Fplans%3Fdimension%3Dpost_audio_button%26postId%3D143938087d0e&operation=register&redirect=https%3A%2F%2Fmedium.com%2F%40brianhulela%2Funderstanding-bollinger-bands-143938087d0e&source=---header_actions--143938087d0e---------------------post_audio_button------------------) Share Press enter or click to view image in full size  Buy and Sell signals based on Bollinger Bands Bollinger Bands are a popular and highly regarded technical analysis tool used by traders to assess market volatility, identify overbought and oversold conditions, and potentially spot trend reversals. Developed by John Bollinger in the early 1980s, these bands have become a staple in the toolkit of both novice and professional traders. In this article, we’ll break down how Bollinger Bands work, how to interpret them, and how you can use them effectively in your trading strategy. ## What Are Bollinger Bands? Press enter or click to view image in full size  Upper, Middle and Lower Bands At their core, Bollinger Bands consist of three lines: 1. **Middle Band**: This is typically a 20-period simple moving average (SMA) of the asset’s price. The middle band represents the trend or average price level over a set time period. 2. **Upper Band**: The upper band is calculated by adding two standard deviations to the middle band. It represents the upper limit of price volatility and is generally… ## Create an account to read the full story. The author made this story available to Medium members only. If you’re new to Medium, create a new account to read this story on us. 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