🕷️ Crawler Inspector

URL Lookup

Direct Parameter Lookup

Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 7 (from laksa022)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa007.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.babypips.com/learn/forex/bollinger-bands\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.babypips.com/learn/forex/bollinger-bands\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.babypips.com\/learn\/forex\/bollinger-bands","crawl_time":1773610363,"first_indexed_time":1496555750,"http_code":200,"src_unparsed":"com,babypips!www,\/learn\/forex\/bollinger-bands s443","src_root_hash":"17919460998607966807","history_drop_reason":null,"meta_title":"How to Use Bollinger Bands - Babypips.com","meta_descriptions":["Learn how forex traders use Bollinger Bands as dynamic support and resistance levels."],"attrs_boilerpipe_text":"Congratulations on making it to the 5th grade!\nEach time you make it to the next grade, you continue to add more and more tools to your trader’s\ntechnical analysis\n(TA) toolbox.\n“What’s a trader’s toolbox?” you ask.\nSimple!\nLet’s compare trading to building a house.\nYou wouldn’t use a hammer on a screw, right? Nor would you use a buzz saw to drive in nails.\nThere’s a proper tool for each situation.\nJust like in trading, certain\ntechnical indicators\nare best used for\nparticular environments or situations\n.\nSo, the more tools you have, the better you can ADAPT to the ever-changing market environment.\nOr if you want to focus on a few specific trading environments or tools, that’s cool too.\nIt’s good to have a specialist when installing your electricity or plumbing in a house, just like it’s cool to be a\nBollinger Bands\nor\nMoving Average\n specialist.\nThere are a million different ways to grab some pips!\nIn this lesson, as you learn about these indicators, think of each as a new tool that you can add to that toolbox of yours.\nYou might not necessarily use all of these tools, but it’s always nice to have plenty of options, right?\nYou might even find one that you understand and are comfortable enough to master on its own. Now, enough about tools already!\nLet’s get started!\nBollinger Bands\nBollinger Bands, a technical indicator developed by\nJohn Bollinger\n, are used to measure a\nmarket’s volatility\n and identify “overbought” or “oversold” conditions.\nJohn Bollinger\nBasically, this little tool tells us whether the market is quiet or whether the market is LOUD!\nWhen the market is quiet, the bands contract, and when the market is LOUD, the bands expand.\nLook at the chart below. The Bollinger Bands (BB) is a\nchart overlay\nindicator meaning it’s displayed over the price.\nNotice how when the price is quiet, the bands are close together. When the price moves up, the bands spread apart.\nThe upper and lower bands measure\nvolatility\nor the degree of\nvariation\nof prices over time.\nBecause Bollinger Bands measures volatility, the bands adjust automatically to changing market conditions.\nThat’s all there is to it. Yes, we could go on and bore you by going into the history of the Bollinger Bands, how it is calculated, the mathematical formulas behind it, and so on and so forth, but we really didn’t feel like typing it all out.\nOkay fine fine, we’ll give a brief description…\nWhat are Bollinger Bands?\nBollinger Bands are typically plotted as three lines:\nAn upper band\nA middle line\nA lower band\nThe middle line of the indicator is a simple \nmoving average\n (SMA).\nMost charting programs default to a 20-period, which is fine for most traders, but you can experiment with different moving average lengths after you get a little experience applying Bollinger Bands.\nThe upper and lower bands, by default, represent\ntwo standard deviations\nabove and below the middle line (moving average).\nIf you’re freaking out because you’re not familiar with standard deviations.\nHave no fear.\nThe concept of standard deviation (SD) is just a measure of how spread out numbers are.\nIf the upper and lower bands are \n1 standard deviation,\nthis means that about 68% of price moves that have occurred recently are CONTAINED within these bands.\nIf the upper and lower bands are\n2 standard deviations\n, this means that about 95% of price moves that have occurred recently are CONTAINED  within these bands.\nYou’re probably falling asleep let’s hit you with an image.\nAs you can see, the higher the value of SD you use for the bands, the more prices the bands “capture”.\nYou can try out different standard deviations for the bands once you become more familiar with how they work.\nIn all honesty, to get started, you don’t need to know most of this stuff. We think it’s more important that we show you some ways you can apply the Bollinger Bands to your trading.\nNote: If you really want to learn about the calculations of Bollinger Bands, check out John’s book, \nBollinger on Bollinger Bands, \nor check out our lovely Forexpedia page on\nBollinger Bands\n.\nBollinger Bands as a Volatility Indicator\nBollinger Bands provide a visual representation of volatility.\nThe\nwidth of the bands\n(the distance between the upper and lower bands) increases when volatility is high and contracts when volatility is low:\nWhen the bands are far apart, it indicates high volatility.\nWhen the bands are close together, it indicates low volatility.\nThis is because the standard deviation is larger when price fluctuations are more extreme, leading to wider bands.\nThe Bollinger Bounce\nOne thing you should know about Bollinger Bands is that the \nprice tends to return to the middle of the bands\n.\nThat is the whole idea behind the “\nBollinger Bounce\n.”\nBy looking at the chart below, can you tell us where the price might go next?\nIf you said down, then you are correct! As you can see, the price settled back down towards the\nmiddle area of the bands\n.\nWhat you just saw was a classic Bollinger Bounce. The reason these bounces occur is that the \nBollinger bands act like dynamic support and resistance levels\n.\nThe longer the time frame you are in, the stronger these bands tend to be.\nMany traders have developed systems that thrive on these bounces and this strategy is best used when the market is\nranging\nand there is no clear trend.\nYou only want to trade this approach when price is trendless.\nSo be mindful of the WIDTH of the bands\n.\nAvoid trading the Bollinger Bounce when the bands are\nexpanding\n, because this usually means the price is not moving within a range but in a TREND!\nInstead, look for these conditions when the\nbands are stable or even contracting.\nNow let’s look at a way to use Bollinger Bands when the market is TRENDING…\nBollinger Squeeze\nThe Bollinger Squeeze occurs when the bands come close together, indicating a period of low volatility. This tight constriction is called the “\nsqueeze\n.”\nThe squeeze suggests that a significant price move could be coming.\nIf the candles start to break out above the TOP band, then the move will usually continue to go UP.\nIf the candles start to break out below the BOTTOM band, then the price will usually continue to go DOWN.\nLooking at the chart above, you can see the bands squeezing together. The price has just started to break out of the top band. Based on this information, where do you think the price will go?\nIf you said up, you are correct again!\nThis is how a typical Bollinger Squeeze works.\nThis strategy is designed for you to catch a move as early as possible.\nSetups like these don’t occur every day, but you can probably spot them a few times a week if you are looking at a 15-minute chart.\nThere are many other things you can do with Bollinger Bands, but these are the two most common strategies associated with them.\nGo ahead and add the indicator to your charts and watch how prices move with respect to the three bands. Once you’ve got the hang of it, try changing up some of the indicator’s parameters.\nIt’s time to put this in your trader’s toolbox before we move on to the next indicator.","attrs_markdown":"## [Babypips](https:\/\/www.babypips.com\/)\n- [AnalysisPremium](https:\/\/www.babypips.com\/analysis)\n- [News](https:\/\/www.babypips.com\/news)\n- [Trading](https:\/\/www.babypips.com\/trading)\n  - [Crypto](https:\/\/www.babypips.com\/trading\/crypto)\n    - [![Chart Art: Bitcoin (BTC\/USD) Triangle Breakout and Retest](https:\/\/bpcdn.co\/images\/2024\/07\/24191710\/chart-art-btc-usd-2024-360x188.png)](https:\/\/www.babypips.com\/trading\/chart-art-crypto-bitcoin-btcusd-triangle-breakout-retest-2026-03-05)\n      [Chart Art: Bitcoin (BTC\/USD) Triangle Breakout and Retest](https:\/\/www.babypips.com\/trading\/chart-art-crypto-bitcoin-btcusd-triangle-breakout-retest-2026-03-05)\n    - [![Chart Art: Bitcoin (BTC\/USD) Triangle Breakout Soon?](https:\/\/bpcdn.co\/images\/2024\/07\/24191710\/chart-art-btc-usd-2024-360x188.png)](https:\/\/www.babypips.com\/trading\/chart-art-crypto-bitcoin-btcusd-triangle-breakout-soon-2026-02-25)\n      [Chart Art: Bitcoin (BTC\/USD) Triangle Breakout Soon?](https:\/\/www.babypips.com\/trading\/chart-art-crypto-bitcoin-btcusd-triangle-breakout-soon-2026-02-25)\n    - [![Chart Art: Can Bitcoin (BTC\/USD) Find Support at This Channel Bottom?](https:\/\/bpcdn.co\/images\/2024\/07\/24191710\/chart-art-btc-usd-2024-360x188.png)](https:\/\/www.babypips.com\/trading\/chart-art-crypto-bitcoin-find-support-channel-bottom-2026-01-26)\n      [Chart Art: Can Bitcoin (BTC\/USD) Find Support at This Channel Bottom?](https:\/\/www.babypips.com\/trading\/chart-art-crypto-bitcoin-find-support-channel-bottom-2026-01-26)\n    - [![Chart Art: Bitcoin (BTC\/USD) Testing Support, Bounce or Break Next?](https:\/\/bpcdn.co\/images\/2024\/07\/24191710\/chart-art-btc-usd-2024-360x188.png)](https:\/\/www.babypips.com\/trading\/chart-art-bitcoin-btc-usd-testing-support-bounce-or-break-next-2025-10-16)\n      [Chart Art: Bitcoin (BTC\/USD) Testing Support, Bounce or Break Next?](https:\/\/www.babypips.com\/trading\/chart-art-bitcoin-btc-usd-testing-support-bounce-or-break-next-2025-10-16)\n  - [Trading Systems](https:\/\/www.babypips.com\/trading\/trading-systems)\n    - [![How to Choose a Prop Firm](https:\/\/bpcdn.co\/images\/2026\/03\/07091758\/How-to-Choose-a-Prop-Firm-BabyPips-Google-Docs-03-07-2026_09_17_AM-360x200.png)](https:\/\/www.babypips.com\/trading\/how-to-choose-a-prop-firm)\n      [How to Choose a Prop Firm](https:\/\/www.babypips.com\/trading\/how-to-choose-a-prop-firm)\n    - [![Cashback Forex Explained: How Traders Can Reduce Costs and Improve Net Returns](https:\/\/bpcdn.co\/images\/2026\/02\/28103117\/babypip_Splash-720x400-1-360x200.png)](https:\/\/www.babypips.com\/trading\/cashback-forex-explained-how-traders-can-reduce-costs-and-improve-net-returns)\n      [Cashback Forex Explained: How Traders Can Reduce Costs and Improve Net Returns](https:\/\/www.babypips.com\/trading\/cashback-forex-explained-how-traders-can-reduce-costs-and-improve-net-returns)\n    - [![Leverage Without the Drama: A Beginner’s Guide to Margin, Liquidation, and Risk of Ruin](https:\/\/bpcdn.co\/images\/2026\/02\/21101427\/3-Babypips_720x400-360x200.png)](https:\/\/www.babypips.com\/trading\/leverage-without-the-drama-a-beginners-guide-to-margin-liquidation-and-risk-of-ruin)\n      [Leverage Without the Drama: A Beginner’s Guide to Margin, Liquidation, and Risk of Ruin](https:\/\/www.babypips.com\/trading\/leverage-without-the-drama-a-beginners-guide-to-margin-liquidation-and-risk-of-ruin)\n    - [![The Role of Intelligent Automation in Building Consistent Forex Trading Processes](https:\/\/bpcdn.co\/images\/2026\/02\/21102139\/THUMBNAIL-Article-2-360x200.png)](https:\/\/www.babypips.com\/trading\/the-role-of-intelligent-automation-in-building-consistent-forex-trading-processes)\n      [The Role of Intelligent Automation in Building Consistent Forex Trading Processes](https:\/\/www.babypips.com\/trading\/the-role-of-intelligent-automation-in-building-consistent-forex-trading-processes)\n  - [Psychology](https:\/\/www.babypips.com\/trading\/psychology)\n    - [![4 Trading Adjustments to Make in a High Volatility Environment](https:\/\/bpcdn.co\/images\/2021\/03\/05142151\/High-Volatility-Trading-HP-360x188.png)](https:\/\/www.babypips.com\/trading\/psychology-4-adjustments-highly-volatile-environment-2026-03-13)\n      [4 Trading Adjustments to Make in a High Volatility Environment](https:\/\/www.babypips.com\/trading\/psychology-4-adjustments-highly-volatile-environment-2026-03-13)\n    - [![5 Simple Habits That Lower Your Trading Risk Exposure](https:\/\/bpcdn.co\/images\/2020\/05\/01221229\/Habits-that-lower-your-risk-exposure-HP-360x188.png)](https:\/\/www.babypips.com\/trading\/psychology-5-habits-that-lower-your-risk-exposure-2026-03-11)\n      [5 Simple Habits That Lower Your Trading Risk Exposure](https:\/\/www.babypips.com\/trading\/psychology-5-habits-that-lower-your-risk-exposure-2026-03-11)\n    - [![5 Useful Tips for Surviving a Market Crash](https:\/\/bpcdn.co\/images\/2022\/10\/14140644\/tips-for-surviving-a-market-crash-360x188.png)](https:\/\/www.babypips.com\/trading\/psychology-5-useful-tips-surviving-market-crash-2026-03-09)\n      [5 Useful Tips for Surviving a Market Crash](https:\/\/www.babypips.com\/trading\/psychology-5-useful-tips-surviving-market-crash-2026-03-09)\n    - [![How to Deal With “Black Swan” Event Losses](https:\/\/bpcdn.co\/images\/2022\/06\/06195320\/How-to-deal-with-black-swan-event-losses-360x188.png)](https:\/\/www.babypips.com\/trading\/psychology-how-to-deal-black-swan-event-losses-2026-03-05)\n      [How to Deal With “Black Swan” Event Losses](https:\/\/www.babypips.com\/trading\/psychology-how-to-deal-black-swan-event-losses-2026-03-05)\n  - [Technical Analysis](https:\/\/www.babypips.com\/trading\/technical-analysis)\n    - [![Chart Art: USD\/CHF Tests Potential Resistance at .7900](https:\/\/bpcdn.co\/images\/2024\/09\/23090513\/chart-art-usdchf-usd-360x188.png)](https:\/\/www.babypips.com\/trading\/chart-art-forex-usdchf-tests-potential-resistance-at-7900-2026-03-13)\n      [Chart Art: USD\/CHF Tests Potential Resistance at .7900](https:\/\/www.babypips.com\/trading\/chart-art-forex-usdchf-tests-potential-resistance-at-7900-2026-03-13)\n    - [![Chart Art: Gold (XAU\/USD) Reversal Pattern Forming?](https:\/\/bpcdn.co\/images\/2024\/07\/25133256\/chart-art-xauusd-360x188.png)](https:\/\/www.babypips.com\/trading\/chart-art-commodities-gold-reversal-pattern-forming-2026-03-13)\n      [Chart Art: Gold (XAU\/USD) Reversal Pattern Forming?](https:\/\/www.babypips.com\/trading\/chart-art-commodities-gold-reversal-pattern-forming-2026-03-13)\n    - [![Chart Art: Bitcoin (BTC\/USD) Longer-Term Trend Still Intact, Pullback Soon?](https:\/\/bpcdn.co\/images\/2024\/07\/24191710\/chart-art-btc-usd-2024-360x188.png)](https:\/\/www.babypips.com\/trading\/chart-art-crypto-bitcoin-btcusd-long-term-trend-still-intact-pullback-2026-03-12)\n      [Chart Art: Bitcoin (BTC\/USD) Longer-Term Trend Still Intact, Pullback Soon?](https:\/\/www.babypips.com\/trading\/chart-art-crypto-bitcoin-btcusd-long-term-trend-still-intact-pullback-2026-03-12)\n    - [![Chart Art: AUD\/USD Pullback Opportunities After .7200 Rejection](https:\/\/bpcdn.co\/images\/2024\/09\/05084824\/chart-art-audusd-aud-360x188.png)](https:\/\/www.babypips.com\/trading\/chart-art-forex-audusd-pullback-opportunities-after-7200-rejection-2026-03-12)\n      [Chart Art: AUD\/USD Pullback Opportunities After .7200 Rejection](https:\/\/www.babypips.com\/trading\/chart-art-forex-audusd-pullback-opportunities-after-7200-rejection-2026-03-12)\n  - [Trade Ideas](https:\/\/www.babypips.com\/trading\/trade-ideas)\n    - [![Premium Watchlist Recap: Australia GDP (Q4 2025)](https:\/\/bpcdn.co\/images\/2026\/03\/09144448\/australia-gdp-recap-2026-03-09-360x188.png)](https:\/\/www.babypips.com\/analysis\/watchlist-recap-2026-03-06-forex-audchf-australia-q4-gdp)\n      [Premium Watchlist Recap: Australia GDP (Q4 2025)](https:\/\/www.babypips.com\/analysis\/watchlist-recap-2026-03-06-forex-audchf-australia-q4-gdp)\n    - [![TA Alert of the Day: Overbought Stochastic Crossover Suggests USD\/JPY Rally May Be Losing Steam](https:\/\/bpcdn.co\/images\/2026\/03\/05171927\/USDJPY-Overbought-Stochastic-Crossover-2026-03-05-360x187.png)](https:\/\/www.babypips.com\/trading\/ta-alert-stochastic-bearish-crossover-2026-03-05)\n      [TA Alert of the Day: Overbought Stochastic Crossover Suggests USD\/JPY Rally May Be Losing Steam](https:\/\/www.babypips.com\/trading\/ta-alert-stochastic-bearish-crossover-2026-03-05)\n    - [![TA Alert of the Day: EUR\/GBP Momentum Fades as Bearish MACD Crossover Warns of Pullback Risk](https:\/\/bpcdn.co\/images\/2026\/03\/03172502\/EURGBP-MACD-Crossover-2026-03-03-360x187.png)](https:\/\/www.babypips.com\/trading\/ta-alert-eurgbp-macd-bearish-crossover-2026-03-02)\n      [TA Alert of the Day: EUR\/GBP Momentum Fades as Bearish MACD Crossover Warns of Pullback Risk](https:\/\/www.babypips.com\/trading\/ta-alert-eurgbp-macd-bearish-crossover-2026-03-02)\n    - [![TA Alert of the Day: ETH Rebounds Above \\$2,000 as SMA Bullish Crossover Flashes](https:\/\/bpcdn.co\/images\/2026\/03\/02191135\/ETH-rebounds-above-2000-360x187.png)](https:\/\/www.babypips.com\/trading\/ta-alert-ethusd-bullish-sma-crossover-2026-03-02)\n      [TA Alert of the Day: ETH Rebounds Above \\$2,000 as SMA Bullish Crossover Flashes](https:\/\/www.babypips.com\/trading\/ta-alert-ethusd-bullish-sma-crossover-2026-03-02)\n- [Learn Forex](https:\/\/www.babypips.com\/learn)\n  - [Forex Glossary](https:\/\/www.babypips.com\/forexpedia)\n    **Forexpedia** *The original forex trading glossary*\n    \n    From basic trading terms to trading jargon, you can find the explanation for a long list of trading terms here.\n    \n    [Go to Forexpedia](https:\/\/www.babypips.com\/forexpedia)\n    \n    ![](https:\/\/bpcdn.co\/packs\/media\/images\/e2ac568ca37476c3174f.svg)\n  - [Trading Quizzes](https:\/\/www.babypips.com\/quizzes)\n    **Test Your Knowledge** *Challenge yourself with our quizzes\\!*\n    \n    Find out just how much you've learned by taking any of our 50+ trading quizzes. You can even see how your scores compare to others\\!\n    \n    [View Quiz Library](https:\/\/www.babypips.com\/quizzes)\n    \n    ![](https:\/\/bpcdn.co\/packs\/media\/images\/c2507b218ed566611f0e.svg)\n  - [How to Trade Forex](https:\/\/www.babypips.com\/learn\/forex)\n    **The School of Pipsology** *New to forex?*\n    \n    Learn how to trade forex in a fun and easy-to-understand format. Track your progress and learn at your own pace.\n    \n    [Start Learning](https:\/\/www.babypips.com\/learn\/forex)\n    \n    ![](https:\/\/bpcdn.co\/packs\/media\/images\/ca3e5a37d5f4b3ee2736.svg)\n- [Learn Crypto](https:\/\/www.babypips.com\/crypto)\n  - [Crypto Guides](https:\/\/www.babypips.com\/crypto\/guides)\n    **Crypto Guides** *Learn about bitcoin and altcoins.*\n    \n    In our crypto guides, we explore bitcoin and other popular coins and tokens to help you better navigate the crypto jungle.\n    \n    [Explore](https:\/\/www.babypips.com\/crypto\/guides)\n    \n    ![](https:\/\/bpcdn.co\/packs\/media\/images\/c491826a65d63cfd5633.webp)\n  - [Crypto Glossary](https:\/\/www.babypips.com\/crypto\/glossary)\n    **Decryptopedia™** *The ultimate cryptocurrency glossary*\n    \n    Decryptopedia™ helps you decipher crypto jargon back into plain English. Learn the terms that you’ll come across on your crypto journey.\n    \n    [Learn New Lingo](https:\/\/www.babypips.com\/crypto\/glossary)\n    \n    ![](https:\/\/bpcdn.co\/packs\/media\/images\/66fc13cd11069a4dc0d6.webp)\n  - [Crypto Quizzes](https:\/\/www.babypips.com\/crypto\/quizzes)\n    **Crypto Quizzes** *Test your crypto knowledge*\n    \n    Find out just how much you’ve learned in our School of Crypto by taking our crypto quizzes. How will you score against other quiz takers?\n    \n    [Test Yourself](https:\/\/www.babypips.com\/crypto\/quizzes)\n    \n    ![](https:\/\/bpcdn.co\/packs\/media\/images\/8375706a3845f7e3643e.webp)\n  - [Crypto School](https:\/\/www.babypips.com\/crypto\/learn)\n    **School of Crypto** *New to crypto?*\n    \n    Learn about crypto in a fun and easy-to-understand format. Track your progress and learn at your own pace.\n    \n    [Start Learning](https:\/\/www.babypips.com\/crypto\/learn)\n    \n    ![](https:\/\/bpcdn.co\/packs\/media\/images\/9d9ba698f701cd56eaf0.webp)\n- [Forums](https:\/\/forums.babypips.com\/)\n- [Calendar](https:\/\/www.babypips.com\/economic-calendar)\n- [Tools](https:\/\/www.babypips.com\/tools)\n  - [Currency Correlation](https:\/\/www.babypips.com\/tools\/currency-correlation)\n    **Currency Correlation** *How do different currency pairs move in relation to each other?*\n    \n    Our Currency Correlation Calculator helps you identify the strength of relationships between currency pairs.\n    \n    [Give it a try\\!](https:\/\/www.babypips.com\/tools\/currency-correlation)\n    \n    ![](https:\/\/bpcdn.co\/packs\/media\/images\/dc1c9b36a92d67739d4f.svg)\n    \n    ![](https:\/\/www.babypips.com\/learn\/forex\/media\/images\/screen-currency_correlation.png)\n  - [Forex Market Hours](https:\/\/www.babypips.com\/tools\/forex-market-hours)\n    **Market Hours Visualizer** *Easily visualize forex market hours*\n    \n    Instantly find out whether the forex market is open or what the current trading session is based on your local timezone.\n    \n    [Give it a try\\!](https:\/\/www.babypips.com\/tools\/forex-market-hours)\n    \n    ![](https:\/\/bpcdn.co\/packs\/media\/images\/9038289edbb104f50d2d.svg)\n    \n    ![](https:\/\/www.babypips.com\/learn\/forex\/media\/images\/screen-market_hours.png)\n  - [Risk-On Risk-Off Meter](https:\/\/www.babypips.com\/tools\/risk-on-risk-off-meter)\n    **Risk-On Risk-Off Meter** *To risk, or not to risk?*\n    \n    Our Risk-On\/Off Meter helps you gauge risk sentiment of the market & make trades best suitable to the current market conditions.\n    \n    [Give it a try\\!](https:\/\/www.babypips.com\/tools\/risk-on-risk-off-meter)\n    \n    ![](https:\/\/bpcdn.co\/packs\/media\/images\/0c5e3872eba1a230b15a.svg)\n    \n    ![](https:\/\/www.babypips.com\/learn\/forex\/media\/images\/screen-risk_meter.png)\n  - [Pivot Point Calculator](https:\/\/www.babypips.com\/tools\/pivot-point-calculator)\n    **Pivot Point Calculator** *Quickly identify support and resistance levels*\n    \n    Determine significant support and resistance levels with the help of pivot points.\n    \n    [Give it a try\\!](https:\/\/www.babypips.com\/tools\/pivot-point-calculator)\n    \n    ![](https:\/\/bpcdn.co\/packs\/media\/images\/73f62bc3e68ac7dd8742.svg)\n    \n    ![](https:\/\/www.babypips.com\/learn\/forex\/media\/images\/screen-pivot_point.png)\n  - [Gain & Loss Calculator](https:\/\/www.babypips.com\/tools\/gain-loss-percentage-calculator)\n    **Gain & Loss Calculator** *What's your percentage gain... or loss?*\n    \n    Our gain and loss percentage calculator quickly tells you the percentage of your account balance that you have won or lost.\n    \n    [Give it a try\\!](https:\/\/www.babypips.com\/tools\/gain-loss-percentage-calculator)\n    \n    ![](https:\/\/bpcdn.co\/packs\/media\/images\/e8fb6a9b6b5585da99dc.svg)\n    \n    ![](https:\/\/www.babypips.com\/learn\/forex\/media\/images\/screen-gain_loss.png)\n  - [Pip Value Calculator](https:\/\/www.babypips.com\/tools\/pip-value-calculator)\n    **Pip Value Calculator** *How much is each pip worth?*\n    \n    Determine the value per pip in your trading account's currency so you can better manage your risk per trade.\n    \n    [Give it a try\\!](https:\/\/www.babypips.com\/tools\/pip-value-calculator)\n    \n    ![](https:\/\/bpcdn.co\/packs\/media\/images\/f4fcb17605c39f5cf06c.svg)\n    \n    ![](https:\/\/www.babypips.com\/learn\/forex\/media\/images\/screen-pip_value.png)\n  - [Position Size Calculator](https:\/\/www.babypips.com\/tools\/position-size-calculator)\n    **Position Size Calculator** *Practice proper position sizing*\n    \n    Find the approximate amount of currency units to buy or sell so you can control your maximum risk per position.\n    \n    [Give it a try\\!](https:\/\/www.babypips.com\/tools\/position-size-calculator)\n    \n    ![](https:\/\/bpcdn.co\/packs\/media\/images\/1ecc20be46b4e6b168f2.svg)\n    \n    ![](https:\/\/www.babypips.com\/learn\/forex\/media\/images\/screen-position_size.png)\n- [MarketMilk™](https:\/\/marketmilk.babypips.com\/)\n\nSearch\n\n- [Sign In](https:\/\/www.babypips.com\/account\/sign-in) \\| [Join](https:\/\/www.babypips.com\/account\/join)\n\nView Menu\n\n- [Sign In](https:\/\/www.babypips.com\/account\/sign-in) \/ [Join](https:\/\/www.babypips.com\/account\/join)\n- [Home](https:\/\/www.babypips.com\/)\n- [MarketMilk™](https:\/\/marketmilk.babypips.com\/)\n  - [Currency Strength Meter](https:\/\/marketmilk.babypips.com\/currency-strength)\n  - [Currency Volatility Meter](https:\/\/marketmilk.babypips.com\/currency-volatility)\n  - [FX Market Snapshot](https:\/\/marketmilk.babypips.com\/)\n  - [Top Gainers and Losers](https:\/\/marketmilk.babypips.com\/market-movers)\n  - [Crypto Market Snapshot](https:\/\/marketmilk.babypips.com\/crypto)\n  - [Crypto Strength Meter](https:\/\/marketmilk.babypips.com\/crypto\/currency-strength)\n- [AnalysisPremium](https:\/\/www.babypips.com\/analysis)\n- [News](https:\/\/www.babypips.com\/news)\n- [Trading](https:\/\/www.babypips.com\/trading)\n  - [Trade Ideas](https:\/\/www.babypips.com\/trading\/trade-ideas)\n  - [Technical Analysis](https:\/\/www.babypips.com\/trading\/technical-analysis)\n  - [Psychology](https:\/\/www.babypips.com\/trading\/psychology)\n  - [Trading Systems](https:\/\/www.babypips.com\/trading\/trading-systems)\n  - [Crypto](https:\/\/www.babypips.com\/trading\/crypto)\n- [Learn Forex](https:\/\/www.babypips.com\/learn)\n  - [How to Trade Forex](https:\/\/www.babypips.com\/learn\/forex)\n  - [Forex Glossary](https:\/\/www.babypips.com\/forexpedia)\n  - [Trading Quizzes](https:\/\/www.babypips.com\/quizzes)\n- [Learn Crypto](https:\/\/www.babypips.com\/crypto)\n  - [Crypto School](https:\/\/www.babypips.com\/crypto\/learn)\n  - [Crypto Glossary](https:\/\/www.babypips.com\/crypto\/glossary)\n  - [Crypto Quizzes](https:\/\/www.babypips.com\/crypto\/quizzes)\n  - [Crypto Guides](https:\/\/www.babypips.com\/crypto\/guides)\n- [Forums](https:\/\/forums.babypips.com\/)\n  - [Beginner Questions](https:\/\/forums.babypips.com\/c\/beginner-questions)\n  - [Trading Systems](https:\/\/forums.babypips.com\/c\/trading-systems)\n- [Calendar](https:\/\/www.babypips.com\/economic-calendar)\n  - [Economic Calendar](https:\/\/www.babypips.com\/economic-calendar)\n- [Tools](https:\/\/www.babypips.com\/tools)\n  - [Currency Correlation](https:\/\/www.babypips.com\/tools\/currency-correlation)\n  - [Forex Market Hours](https:\/\/www.babypips.com\/tools\/forex-market-hours)\n  - [Risk-On Risk-Off Meter](https:\/\/www.babypips.com\/tools\/risk-on-risk-off-meter)\n  - [Pivot Point Calculator](https:\/\/www.babypips.com\/tools\/pivot-point-calculator)\n  - [Gain & Loss Calculator](https:\/\/www.babypips.com\/tools\/gain-loss-percentage-calculator)\n  - [Pip Value Calculator](https:\/\/www.babypips.com\/tools\/pip-value-calculator)\n  - [Position Size Calculator](https:\/\/www.babypips.com\/tools\/position-size-calculator)\n  - [Regulatory Organizations](https:\/\/www.babypips.com\/tools\/forex-regulation)\n\n1. [School of Pipsology](https:\/\/www.babypips.com\/learn\/forex)\n2. [Elementary](https:\/\/www.babypips.com\/learn\/forex\/elementary)\n3. [Popular Chart Indicators](https:\/\/www.babypips.com\/learn\/forex\/elementary#common-chart-indicators)\n# How to Use Bollinger Bands\n\nListen\n\nTranslate\n\n1. [English](https:\/\/www.babypips.com\/learn\/forex\/bollinger-bands)\n2. [العربية (Arabic)](https:\/\/www.babypips.com\/ar\/learn\/forex\/bollinger-bands)\n3. [Deutsch (German)](https:\/\/www.babypips.com\/de\/learn\/forex\/bollinger-bands)\n4. [Español (Spanish)](https:\/\/www.babypips.com\/es\/learn\/forex\/bollinger-bands)\n5. [Français (French)](https:\/\/www.babypips.com\/fr\/learn\/forex\/bollinger-bands)\n6. [Bahasa Indonesia (Indonesian)](https:\/\/www.babypips.com\/id\/learn\/forex\/bollinger-bands)\n7. [Italiano (Italian)](https:\/\/www.babypips.com\/it\/learn\/forex\/bollinger-bands)\n8. [日本語 (Japanese)](https:\/\/www.babypips.com\/ja\/learn\/forex\/bollinger-bands)\n9. [한국어 (Korean)](https:\/\/www.babypips.com\/ko\/learn\/forex\/bollinger-bands)\n10. [Bahasa Melayu (Malay)](https:\/\/www.babypips.com\/ms\/learn\/forex\/bollinger-bands)\n11. [Português (Portuguese)](https:\/\/www.babypips.com\/pt\/learn\/forex\/bollinger-bands)\n12. [Portuguese (Brazilian)](https:\/\/www.babypips.com\/pt-BR\/learn\/forex\/bollinger-bands)\n13. [ไทย (Thai)](https:\/\/www.babypips.com\/th\/learn\/forex\/bollinger-bands)\n14. [Tagalog](https:\/\/www.babypips.com\/tl\/learn\/forex\/bollinger-bands)\n15. [Tiếng Việt (Vietnamese)](https:\/\/www.babypips.com\/vi\/learn\/forex\/bollinger-bands)\n16. [🔥 (Gen Z Slang)](https:\/\/www.babypips.com\/z\/learn\/forex\/bollinger-bands)\n17. [简体中文 (Simplified Chinese)](https:\/\/www.babypips.com\/zh-CN\/learn\/forex\/bollinger-bands)\n18. [繁體中文 (Traditional Chinese)](https:\/\/www.babypips.com\/zh-TW\/learn\/forex\/bollinger-bands)\n\n[Stay prepared and confident with exclusive content built to improve your daily prep, strategy development, and trade outcomes. **Join Babypips Premium.**](https:\/\/www.babypips.com\/na\/t\/13)\n\nPartner Center\n\nCongratulations on making it to the 5th grade\\!\n\nEach time you make it to the next grade, you continue to add more and more tools to your trader’s [technical analysis](https:\/\/www.babypips.com\/forexpedia\/technical-analysis) (TA) toolbox.\n\n“What’s a trader’s toolbox?” you ask.\n\nSimple\\!\n\n[![Trader Toolbox](https:\/\/bpcdn.co\/images\/2011\/02\/16172052\/trader-toolbox-360x273.png)](https:\/\/bpcdn.co\/images\/2011\/02\/16172052\/trader-toolbox.png)\n\nLet’s compare trading to building a house.\n\nYou wouldn’t use a hammer on a screw, right? Nor would you use a buzz saw to drive in nails.\n\n**There’s a proper tool for each situation.**\n\nJust like in trading, certain [technical indicators](https:\/\/www.babypips.com\/forexpedia\/technical-indicator) are best used for **particular environments or situations**.\n\nSo, the more tools you have, the better you can ADAPT to the ever-changing market environment.\n\nOr if you want to focus on a few specific trading environments or tools, that’s cool too.\n\nIt’s good to have a specialist when installing your electricity or plumbing in a house, just like it’s cool to be a [Bollinger Bands](https:\/\/www.babypips.com\/forexpedia\/bollinger-bands) or [Moving Average](https:\/\/www.babypips.com\/forexpedia\/moving-average) specialist.\n\nThere are a million different ways to grab some pips\\!\n\nIn this lesson, as you learn about these indicators, think of each as a new tool that you can add to that toolbox of yours.\n\nYou might not necessarily use all of these tools, but it’s always nice to have plenty of options, right?\n\nYou might even find one that you understand and are comfortable enough to master on its own. Now, enough about tools already\\!\n\nLet’s get started\\!\n\n## Bollinger Bands\nBollinger Bands, a technical indicator developed by [John Bollinger](https:\/\/en.wikipedia.org\/wiki\/John_Bollinger \"John Bollinger\"), are used to measure a **market’s volatility** and identify “overbought” or “oversold” conditions.\n\n![John Bollinger](https:\/\/bpcdn.co\/images\/2011\/02\/john-bollinger.jpg)\n\nJohn Bollinger\n\nBasically, this little tool tells us whether the market is quiet or whether the market is LOUD\\!\n\n**When the market is quiet, the bands contract, and when the market is LOUD, the bands expand.**\n\nLook at the chart below. The Bollinger Bands (BB) is a **chart overlay** indicator meaning it’s displayed over the price.\n\n![Bollinger Bands](https:\/\/bpcdn.co\/images\/2016\/05\/grade5-bollinger-band.png)\n\nNotice how when the price is quiet, the bands are close together. When the price moves up, the bands spread apart.\n\nThe upper and lower bands measure **volatility** or the degree of *variation* of prices over time.\n\nBecause Bollinger Bands measures volatility, the bands adjust automatically to changing market conditions.\n\nThat’s all there is to it. Yes, we could go on and bore you by going into the history of the Bollinger Bands, how it is calculated, the mathematical formulas behind it, and so on and so forth, but we really didn’t feel like typing it all out.\n\nOkay fine fine, we’ll give a brief description…\n\n## What are Bollinger Bands?\nBollinger Bands are typically plotted as three lines:\n\n1. An upper band\n2. A middle line\n3. A lower band\n\nThe middle line of the indicator is a simple moving average (SMA).\n\nMost charting programs default to a 20-period, which is fine for most traders, but you can experiment with different moving average lengths after you get a little experience applying Bollinger Bands.\n\nThe upper and lower bands, by default, represent **two standard deviations** above and below the middle line (moving average).\n\nIf you’re freaking out because you’re not familiar with standard deviations.\n\nHave no fear.\n\nThe concept of standard deviation (SD) is just a measure of how spread out numbers are.\n\nIf the upper and lower bands are **1 standard deviation,** this means that about 68% of price moves that have occurred recently are CONTAINED within these bands.\n\nIf the upper and lower bands are **2 standard deviations**, this means that about 95% of price moves that have occurred recently are CONTAINED within these bands.\n\nYou’re probably falling asleep let’s hit you with an image.\n\n[![Standard Deviation](https:\/\/bpcdn.co\/images\/2011\/02\/16171058\/standard-deviation.png)](https:\/\/bpcdn.co\/images\/2011\/02\/16171058\/standard-deviation.png)\n\nAs you can see, the higher the value of SD you use for the bands, the more prices the bands “capture”.\n\nYou can try out different standard deviations for the bands once you become more familiar with how they work.\n\nIn all honesty, to get started, you don’t need to know most of this stuff. We think it’s more important that we show you some ways you can apply the Bollinger Bands to your trading.\n\nNote: If you really want to learn about the calculations of Bollinger Bands, check out John’s book, [Bollinger on Bollinger Bands,](https:\/\/www.amazon.com\/Bollinger-Bands-John\/dp\/0071373683) or check out our lovely Forexpedia page on [Bollinger Bands](https:\/\/www.babypips.com\/forexpedia\/bollinger-bands).\n\n## Bollinger Bands as a Volatility Indicator\nBollinger Bands provide a visual representation of volatility.\n\nThe **width of the bands** (the distance between the upper and lower bands) increases when volatility is high and contracts when volatility is low:\n\n- When the bands are far apart, it indicates high volatility.\n- When the bands are close together, it indicates low volatility.\n\nThis is because the standard deviation is larger when price fluctuations are more extreme, leading to wider bands.\n\n## The Bollinger Bounce\nOne thing you should know about Bollinger Bands is that the **price tends to return to the middle of the bands**.\n\nThat is the whole idea behind the “**Bollinger Bounce**.”\n\nBy looking at the chart below, can you tell us where the price might go next?\n\n![Price reached the top of the Bollinger band](https:\/\/bpcdn.co\/images\/2016\/05\/grade5-bollinger-resistance-start.png)\n\nIf you said down, then you are correct! As you can see, the price settled back down towards the **middle area of the bands**.\n\n![Price bounces back towards the middle of the Bollinger Bands](https:\/\/bpcdn.co\/images\/2016\/05\/grade5-bollinger-resistance-end.png)\n\nWhat you just saw was a classic Bollinger Bounce. The reason these bounces occur is that the **Bollinger bands act like dynamic support and resistance levels**.\n\nThe longer the time frame you are in, the stronger these bands tend to be.\n\nMany traders have developed systems that thrive on these bounces and this strategy is best used when the market is **ranging** and there is no clear trend.\n\nYou only want to trade this approach when price is trendless. **So be mindful of the WIDTH of the bands**.\n\nAvoid trading the Bollinger Bounce when the bands are **expanding**, because this usually means the price is not moving within a range but in a TREND\\!\n\nInstead, look for these conditions when the **bands are stable or even contracting.**\n\nNow let’s look at a way to use Bollinger Bands when the market is TRENDING…\n\n## Bollinger Squeeze\nThe Bollinger Squeeze occurs when the bands come close together, indicating a period of low volatility. This tight constriction is called the “**squeeze**.”\n\nThe squeeze suggests that a significant price move could be coming.\n\nIf the candles start to break out above the TOP band, then the move will usually continue to go UP.\n\nIf the candles start to break out below the BOTTOM band, then the price will usually continue to go DOWN.\n\n![Bollinger Band squeeze](https:\/\/bpcdn.co\/images\/2016\/05\/grade5-bollinger-squeeze-start.png)\n\nLooking at the chart above, you can see the bands squeezing together. The price has just started to break out of the top band. Based on this information, where do you think the price will go?\n\n![Bollinger Band Squeeze Expands](https:\/\/bpcdn.co\/images\/2016\/05\/grade5-bollinger-squeeze-end.png)\n\nIf you said up, you are correct again\\!\n\nThis is how a typical Bollinger Squeeze works.\n\nThis strategy is designed for you to catch a move as early as possible.\n\nSetups like these don’t occur every day, but you can probably spot them a few times a week if you are looking at a 15-minute chart.\n\nThere are many other things you can do with Bollinger Bands, but these are the two most common strategies associated with them.\n\nGo ahead and add the indicator to your charts and watch how prices move with respect to the three bands. Once you’ve got the hang of it, try changing up some of the indicator’s parameters.\n\nIt’s time to put this in your trader’s toolbox before we move on to the next indicator.\n\n*Did this content help you?* Please consider [supporting Babypips.com.](https:\/\/www.babypips.com\/contribute) Your contribution will enable us to keep providing content — for free — to you and others.\n\n[**Next Lesson** How to Use BBTrend](https:\/\/www.babypips.com\/learn\/forex\/bbtrend-by-john-bollinger)\n\nElementary\n\n#### Your Progress\n[Sign in](https:\/\/www.babypips.com\/account\/sign-in) to unlock progress tracking.\n\n[View All Courses](https:\/\/www.babypips.com\/learn\/forex)\n\n1. Grade 1\n   \n   [Support and Resistance Levels](https:\/\/www.babypips.com\/learn\/forex\/elementary#support-and-resistance-levels)\n   1. [What is Support and Resistance?](https:\/\/www.babypips.com\/learn\/forex\/support-and-resistance)\n   2. [Trend Lines](https:\/\/www.babypips.com\/learn\/forex\/trend-lines)\n   3. [Trend Channels](https:\/\/www.babypips.com\/learn\/forex\/trend-channels)\n   4. [How to Trade Support and Resistance](https:\/\/www.babypips.com\/learn\/forex\/trading-the-lines)\n   5. [Psychological Levels](https:\/\/www.babypips.com\/learn\/forex\/psychological-level)\n   6. [Summary: Trading Support and Resistance](https:\/\/www.babypips.com\/learn\/forex\/summary-trading-support-resistance)\n2. Grade 2\n   \n   [Japanese Candlesticks](https:\/\/www.babypips.com\/learn\/forex\/elementary#japanese-candle-sticks)\n   1. [What is a Japanese Candlestick?](https:\/\/www.babypips.com\/learn\/forex\/what-is-a-japanese-candlestick)\n   2. [Japanese Candlestick Anatomy](https:\/\/www.babypips.com\/learn\/forex\/sexy-bodies-and-strange-shadows)\n   3. [Basic Japanese Candlestick Patterns](https:\/\/www.babypips.com\/learn\/forex\/basic-candlestick-patterns)\n   4. [Single Candlestick Patterns](https:\/\/www.babypips.com\/learn\/forex\/lone-rangers-single-candlestick-patterns)\n   5. [Dual Candlestick Patterns](https:\/\/www.babypips.com\/learn\/forex\/double-trouble-dual-candlestick-patterns)\n   6. [Triple Candlestick Patterns](https:\/\/www.babypips.com\/learn\/forex\/triple-candlestick-patterns)\n   7. [Japanese Candlestick Cheat Sheet](https:\/\/www.babypips.com\/learn\/forex\/japanese-candlesticks-cheat-sheet)\n   8. [Candlesticks with Support and Resistance](https:\/\/www.babypips.com\/learn\/forex\/candlestick_with_support_and_resistance)\n   9. [Common Mistakes That New Traders Make With Japanese Candlesticks](https:\/\/www.babypips.com\/learn\/forex\/japanese-candlestick-trading-mistakes)\n   10. [Summary: Japanese Candlesticks](https:\/\/www.babypips.com\/learn\/forex\/summary-of-candlesticks)\n3. Grade 3\n   \n   [Fibonacci](https:\/\/www.babypips.com\/learn\/forex\/elementary#fibonacci)\n   1. [Fibonacci Trading](https:\/\/www.babypips.com\/learn\/forex\/fibonacci-who)\n   2. [How to Use Fibonacci Retracements](https:\/\/www.babypips.com\/learn\/forex\/fibonacci-retracement)\n   3. [Fibonacci Retracements are NOT Foolproof](https:\/\/www.babypips.com\/learn\/forex\/when-fibonacci-fails)\n   4. [How to Use Fibonacci Retracement with Support and Resistance](https:\/\/www.babypips.com\/learn\/forex\/combining-fibs-with-support-and-resistance)\n   5. [How to Use Fibonacci Retracement with Trend Lines](https:\/\/www.babypips.com\/learn\/forex\/combining-fibs-with-trend-lines)\n   6. [How to Use Fibonacci Retracement with Japanese Candlesticks](https:\/\/www.babypips.com\/learn\/forex\/combining-fibs-with-candlesticks)\n   7. [How to Use Fibonacci Extensions to Know When to Take Profit](https:\/\/www.babypips.com\/learn\/forex\/fibonacci-extensions)\n   8. [How to Use Fibonacci to Place Your Stop so You Lose Less Money](https:\/\/www.babypips.com\/learn\/forex\/placing-stops-with-fibs)\n   9. [Summary: Fibonacci Trading](https:\/\/www.babypips.com\/learn\/forex\/summary-of-fibonacci)\n4. Grade 4\n   \n   [Moving Averages](https:\/\/www.babypips.com\/learn\/forex\/elementary#moving-averages)\n   1. [What Are Moving Averages?](https:\/\/www.babypips.com\/learn\/forex\/silky-smooth-moving-averages)\n   2. [Simple Moving Average (SMA) Explained](https:\/\/www.babypips.com\/learn\/forex\/simple-moving-averages)\n   3. [Exponential Moving Average (EMA) Explained](https:\/\/www.babypips.com\/learn\/forex\/exponential-moving-average)\n   4. [Simple vs. Exponential Moving Averages](https:\/\/www.babypips.com\/learn\/forex\/sma-vs-ema)\n   5. [How to Use Moving Averages to Find the Trend](https:\/\/www.babypips.com\/learn\/forex\/using-moving-averages)\n   6. [How to Use Moving Average Crossovers to Enter Trades](https:\/\/www.babypips.com\/learn\/forex\/moving-average-crossover-trading)\n   7. [How to Use Moving Averages as Dynamic Support and Resistance Levels](https:\/\/www.babypips.com\/learn\/forex\/dynamic-support-and-resistance)\n   8. [How to Use Moving Average Envelopes](https:\/\/www.babypips.com\/learn\/forex\/how-to-use-moving-average-envelopes)\n   9. [How to Analyze Trends With Moving Average Ribbons](https:\/\/www.babypips.com\/learn\/forex\/moving-average-ribbon)\n   10. [How to Trend Trade with Guppy Multiple Moving Average (GMMA)](https:\/\/www.babypips.com\/learn\/forex\/guppy-multiple-moving-average)\n   11. [Summary: Using Moving Averages](https:\/\/www.babypips.com\/learn\/forex\/summary-of-moving-averages)\n5. Grade 5\n   \n   [Popular Chart Indicators](https:\/\/www.babypips.com\/learn\/forex\/elementary#common-chart-indicators)\n   1. [How to Use Bollinger Bands](https:\/\/www.babypips.com\/learn\/forex\/bollinger-bands)\n   2. [How to Use BBTrend](https:\/\/www.babypips.com\/learn\/forex\/bbtrend-by-john-bollinger)\n   3. [How to Use Keltner Channels](https:\/\/www.babypips.com\/learn\/forex\/keltner-channel)\n   4. [How to Use the MACD Indicator](https:\/\/www.babypips.com\/learn\/forex\/macd)\n   5. [How to Use Parabolic SAR](https:\/\/www.babypips.com\/learn\/forex\/parabolic-sar)\n   6. [How to Use the Stochastic Indicator](https:\/\/www.babypips.com\/learn\/forex\/stochastic)\n   7. [How to Use RSI (Relative Strength Index)](https:\/\/www.babypips.com\/learn\/forex\/relative-strength-index)\n   8. [How to Use Williams %R (Williams Percent Range)](https:\/\/www.babypips.com\/learn\/forex\/williams-r)\n   9. [How to Use ADX (Average Directional Index)](https:\/\/www.babypips.com\/learn\/forex\/average-directional-index)\n   10. [Ichimoku Kinko Hyo](https:\/\/www.babypips.com\/learn\/forex\/ichimoku-kinko-hyo)\n   11. [Trading with Multiple Chart Indicators](https:\/\/www.babypips.com\/learn\/forex\/putting-it-all-together)\n   12. [What is the Best Technical Indicator in Forex?](https:\/\/www.babypips.com\/learn\/forex\/best-technical-indicator-forex)\n   13. [Summary: Popular Chart Indicators](https:\/\/www.babypips.com\/learn\/forex\/summary-common-chart-indicators)\n\nSchool of Pipsology\n\nYour Overall Progress Report\n\nLessons Completed\n\n266 of 444\n\n[**Unlock Tracking**, Sign In](https:\/\/www.babypips.com\/account\/sign-in)\n\nPartner Center\n\n[![The5ers](https:\/\/bpcdn.co\/photos\/native_ads_broker_sponsor_ads\/4\/original\/f19a909f0a123e9c3c3369ccc4c7cc13.png)](https:\/\/www.babypips.com\/na\/bs\/4 \"The5ers\")\n\n[![TV](https:\/\/bpcdn.co\/photos\/native_ads_broker_sponsor_ads\/1\/original\/ff12f446a3d64fbce696d9a2a356504c.png)](https:\/\/www.babypips.com\/na\/bs\/1 \"TV\")\n\nWhat to Read Next...\n\n[![How to Choose a Prop Firm](https:\/\/bpcdn.co\/images\/2026\/03\/07091758\/How-to-Choose-a-Prop-Firm-BabyPips-Google-Docs-03-07-2026_09_17_AM-360x200.png)](https:\/\/www.babypips.com\/trading\/how-to-choose-a-prop-firm)\n\n### [How to Choose a Prop Firm](https:\/\/www.babypips.com\/trading\/how-to-choose-a-prop-firm)\n[Sponsored By![OneFunded](https:\/\/bpcdn.co\/images\/2025\/11\/07115717\/154_48.png)](https:\/\/www.babypips.com\/trading\/how-to-choose-a-prop-firm)\n\n[![Fundies Cheat Sheet: Mar 16 – 21, 2026](https:\/\/bpcdn.co\/images\/2025\/01\/27133305\/FX-Fundies-Cheat-Sheet-360x187.png)](https:\/\/www.babypips.com\/analysis\/fundies-cheat-sheet-mar-16-21-2026-kharg-island-fomc-central-bank-super-week)\n\n### [Fundies Cheat Sheet: Mar 16 – 21, 2026](https:\/\/www.babypips.com\/analysis\/fundies-cheat-sheet-mar-16-21-2026-kharg-island-fomc-central-bank-super-week)\n6 hours agoPremium\n\n[![FX Weekly Recap: March 9 – 13, 2026](https:\/\/bpcdn.co\/images\/2022\/01\/28203027\/weekly-fx-market-recap-final-360x188.png)](https:\/\/www.babypips.com\/analysis\/forex-weekly-recap-2026-03-13)\n\n### [FX Weekly Recap: March 9 – 13, 2026](https:\/\/www.babypips.com\/analysis\/forex-weekly-recap-2026-03-13)\n2 days agoPremium\n\n[![4 Trading Adjustments to Make in a High Volatility Environment](https:\/\/bpcdn.co\/images\/2021\/03\/05142151\/High-Volatility-Trading-HP-360x188.png)](https:\/\/www.babypips.com\/trading\/psychology-4-adjustments-highly-volatile-environment-2026-03-13)\n\n### [4 Trading Adjustments to Make in a High Volatility Environment](https:\/\/www.babypips.com\/trading\/psychology-4-adjustments-highly-volatile-environment-2026-03-13)\n2 days ago\n\n[![Event Guide: Canada’s CPI Report (February 2026)](https:\/\/bpcdn.co\/images\/2023\/09\/18093823\/canada-cpi-report-2023-360x187.png)](https:\/\/www.babypips.com\/analysis\/event-guide-forex-canada-cpi-january-2026-03-13)\n\n### [Event Guide: Canada’s CPI Report (February 2026)](https:\/\/www.babypips.com\/analysis\/event-guide-forex-canada-cpi-january-2026-03-13)\n3 days agoPremium\n\n[![Why Tariff Fears Are Driving a New U.S. Dollar Rally](https:\/\/bpcdn.co\/images\/2026\/03\/13154540\/tariff-fears-dollar-rally-360x188.png)](https:\/\/www.babypips.com\/news\/headline-why-tariff-fears-are-driving-a-new-us-dollar-rally-2026-03-13)\n\n### [Why Tariff Fears Are Driving a New U.S. Dollar Rally](https:\/\/www.babypips.com\/news\/headline-why-tariff-fears-are-driving-a-new-us-dollar-rally-2026-03-13)\n3 days ago\n\n[![Chart Art: USD\/CHF Tests Potential Resistance at .7900](https:\/\/bpcdn.co\/images\/2024\/09\/23090513\/chart-art-usdchf-usd-360x188.png)](https:\/\/www.babypips.com\/trading\/chart-art-forex-usdchf-tests-potential-resistance-at-7900-2026-03-13)\n\n### [Chart Art: USD\/CHF Tests Potential Resistance at .7900](https:\/\/www.babypips.com\/trading\/chart-art-forex-usdchf-tests-potential-resistance-at-7900-2026-03-13)\n3 days ago\n\n[![Chart Art: Gold (XAU\/USD) Reversal Pattern Forming?](https:\/\/bpcdn.co\/images\/2024\/07\/25133256\/chart-art-xauusd-360x188.png)](https:\/\/www.babypips.com\/trading\/chart-art-commodities-gold-reversal-pattern-forming-2026-03-13)\n\n### [Chart Art: Gold (XAU\/USD) Reversal Pattern Forming?](https:\/\/www.babypips.com\/trading\/chart-art-commodities-gold-reversal-pattern-forming-2026-03-13)\n3 days ago\n\n[![Financial & Forex Market Recap: March 12, 2026](https:\/\/bpcdn.co\/images\/2026\/03\/12173228\/daily-ff-thumb-2026-03-12-360x195.png)](https:\/\/www.babypips.com\/news\/daily-forex-financial-market-news-recap-2026-03-12)\n\n### [Financial & Forex Market Recap: March 12, 2026](https:\/\/www.babypips.com\/news\/daily-forex-financial-market-news-recap-2026-03-12)\n3 days ago\n\n[![While the World Panics, the Aussie Is Rallying. What’s Up With That?\\!](https:\/\/bpcdn.co\/images\/2026\/03\/12145356\/aussie-winning-currency-360x188.png)](https:\/\/www.babypips.com\/analysis\/explainer-world-panic-aud-rallying-2026-03-12)\n\n### [While the World Panics, the Aussie Is Rallying. What’s Up With That?\\!](https:\/\/www.babypips.com\/analysis\/explainer-world-panic-aud-rallying-2026-03-12)\n4 days ago\n\n[![Chart Art: Bitcoin (BTC\/USD) Longer-Term Trend Still Intact, Pullback Soon?](https:\/\/bpcdn.co\/images\/2024\/07\/24191710\/chart-art-btc-usd-2024-360x188.png)](https:\/\/www.babypips.com\/trading\/chart-art-crypto-bitcoin-btcusd-long-term-trend-still-intact-pullback-2026-03-12)\n\n### [Chart Art: Bitcoin (BTC\/USD) Longer-Term Trend Still Intact, Pullback Soon?](https:\/\/www.babypips.com\/trading\/chart-art-crypto-bitcoin-btcusd-long-term-trend-still-intact-pullback-2026-03-12)\n4 days ago\n\n[![Event Guide: Canada’s Employment Report (February 2026)](https:\/\/bpcdn.co\/images\/2023\/06\/07184156\/canada-employment-update-2023-v2-360x187.png)](https:\/\/www.babypips.com\/analysis\/event-guide-forex-canada-employment-data-february-2026-03-12)\n\n### [Event Guide: Canada’s Employment Report (February 2026)](https:\/\/www.babypips.com\/analysis\/event-guide-forex-canada-employment-data-february-2026-03-12)\n4 days agoPremium\n\n> Things may come to those who wait, but only the things left by those who hustle.Abraham Lincoln\n\n- [No. 1 FX broker in the US †](https:\/\/www.babypips.com\/na\/a\/10\/a)\n- [Trade 80+ FX pairs and over 2500 CFDs](https:\/\/www.babypips.com\/na\/a\/10\/b)\n- [Powerful tools for active traders](https:\/\/www.babypips.com\/na\/a\/10\/c)\n- [Spreads as low as 0.0\\* with RAW Pricing.](https:\/\/www.babypips.com\/na\/a\/10\/d)\n\nLeveraged trading involves significant risk of loss and is not suitable for all investors.\n\n[OPEN AN ACCOUNT](https:\/\/www.babypips.com\/na\/a\/10\/cta)\n\n![](https:\/\/ad.doubleclick.net\/ddm\/trackimp\/N5877.151865BABYPIPS.COM2\/B26160057.414221558;dc_trk_aid=606484669;dc_trk_cid=229647458;utm_source=babypips;utm_medium=display;cid=0010076551;ord=1773610364606;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;gdpr=false;gdpr_consent=;ltd=;dc_tdv=1)\n\nLearn Forex\n\n- [How to Trade Forex](https:\/\/www.babypips.com\/learn\/forex)\n- [Forex Quizzes](https:\/\/www.babypips.com\/quizzes)\n- [Forex Forums](https:\/\/forums.babypips.com\/)\n- [Forex Glossary](https:\/\/www.babypips.com\/forexpedia)\n- [Forex Margin 101](https:\/\/www.babypips.com\/learn\/forex\/what-is-margin-trading)\n- [Technical Analysis 101](https:\/\/www.babypips.com\/learn\/forex\/elementary)\n- [Risk Management 101](https:\/\/www.babypips.com\/learn\/forex\/undergraduate-senior)\n- [Prop Trading Firms 101](https:\/\/www.babypips.com\/learn\/forex\/what-are-prop-trading-firms)\n\nForex Tools\n\n- [MarketMilk™](https:\/\/marketmilk.babypips.com\/)\n- [Currency Correlation Calculator](https:\/\/www.babypips.com\/tools\/currency-correlation)\n- [Economic Calendar](https:\/\/www.babypips.com\/economic-calendar)\n- [Risk-On \/ Risk-Off Meter](https:\/\/www.babypips.com\/tools\/risk-on-risk-off-meter)\n- [Position Size Calculator](https:\/\/www.babypips.com\/tools\/position-size-calculator)\n- [\"Back to Breakeven\" Calculator](https:\/\/www.babypips.com\/tools\/gain-loss-percentage-calculator)\n- [Pip Value Calculator](https:\/\/www.babypips.com\/tools\/pip-value-calculator)\n- [Pivot Point Calculator](https:\/\/www.babypips.com\/tools\/pivot-point-calculator)\n\nCompany\n\n- [About](https:\/\/www.babypips.com\/about)\n- [Contact](https:\/\/www.babypips.com\/contact)\n- [Advertise](https:\/\/www.babypips.com\/advertise)\n- [Newsletter](https:\/\/www.babypips.com\/newsletter)\n- [Testimonials](https:\/\/www.babypips.com\/testimonials)\n- [FAQ](https:\/\/www.babypips.com\/faq)\n- [Subscribe](https:\/\/www.babypips.com\/subscribe)\n\nBabypips\n\n- [Facebook](https:\/\/facebook.com\/babypips)\n- [Instagram](https:\/\/instagram.com\/babypips)\n- [Twitter](https:\/\/twitter.com\/babypips)\n\nBabypips helps new traders learn about the forex and crypto markets without falling asleep.\n\nWe introduce people to the world of trading currencies, both fiat and crypto, through our non-drowsy educational content and tools. We're also a community of traders that support each other on our daily trading journey.\n\nCopyright © 2026 Babypips.com LLC. All rights reserved.\n\n- [Privacy Policy](https:\/\/www.babypips.com\/privacy)\n- [Risk Disclosure](https:\/\/www.babypips.com\/risk-disclosure)\n- [Terms of Use](https:\/\/www.babypips.com\/terms-of-use)\n- Privacy Manager\n\n## Looks like your ad blocker is on.\n×\n\nWe rely on ads to keep creating quality content for you to enjoy for free.\n\nPlease support our site by disabling your ad blocker.\n\nDisable\n\nContinue without supporting us\n\n#### Choose your Ad Blocker\n- Adblock Plus\n- Adblock\n- Adguard\n- Ad Remover\n- Brave\n- Ghostery\n- uBlock Origin\n- uBlock\n- UltraBlock\n- Other\n\n1. In the extension bar, click the AdBlock Plus icon\n2. Click the large blue toggle for this website\n3. Click refresh\n\n1. In the extension bar, click the AdBlock icon\n2. Under \"Pause on this site\" click \"Always\"\n\n1. In the extension bar, click on the Adguard icon\n2. Click on the large green toggle for this website\n\n1. In the extension bar, click on the Ad Remover icon\n2. Click \"Disable on This Website\"\n\n1. In the extension bar, click on the orange lion icon\n2. Click the toggle on the top right, shifting from \"Up\" to \"Down\"\n\n1. In the extension bar, click on the Ghostery icon\n2. Click the \"Anti-Tracking\" shield so it says \"Off\"\n3. Click the \"Ad-Blocking\" stop sign so it says \"Off\"\n4. Refresh the page\n\n1. In the extension bar, click on the uBlock Origin icon\n2. Click on the big, blue power button\n3. Refresh the page\n\n1. In the extension bar, click on the uBlock icon\n2. Click on the big, blue power button\n3. Refresh the page\n\n1. In the extension bar, click on the UltraBlock icon\n2. Check the \"Disable UltraBlock\" checkbox\n\n1. Please disable your Ad Blocker\n2. Disable any DNS blocking tools such as AdGuardDNS or NextDNS\n3. Disable any privacy or tracking protection extensions such as Firefox Enhanced Tracking Protection or DuckDuckGo Privacy.\n\nIf the prompt is still appearing, please disable any tools or services you are using that block internet ads (e.g. DNS Servers, tracking protection or privacy extensions).\n\nGo Back","attrs_readable_markdown":"Congratulations on making it to the 5th grade\\!\n\nEach time you make it to the next grade, you continue to add more and more tools to your trader’s [technical analysis](https:\/\/www.babypips.com\/forexpedia\/technical-analysis) (TA) toolbox.\n\n“What’s a trader’s toolbox?” you ask.\n\nSimple\\!\n\n[![Trader Toolbox](https:\/\/bpcdn.co\/images\/2011\/02\/16172052\/trader-toolbox-360x273.png)](https:\/\/bpcdn.co\/images\/2011\/02\/16172052\/trader-toolbox.png)\n\nLet’s compare trading to building a house.\n\nYou wouldn’t use a hammer on a screw, right? Nor would you use a buzz saw to drive in nails.\n\n**There’s a proper tool for each situation.**\n\nJust like in trading, certain [technical indicators](https:\/\/www.babypips.com\/forexpedia\/technical-indicator) are best used for **particular environments or situations**.\n\nSo, the more tools you have, the better you can ADAPT to the ever-changing market environment.\n\nOr if you want to focus on a few specific trading environments or tools, that’s cool too.\n\nIt’s good to have a specialist when installing your electricity or plumbing in a house, just like it’s cool to be a [Bollinger Bands](https:\/\/www.babypips.com\/forexpedia\/bollinger-bands) or [Moving Average](https:\/\/www.babypips.com\/forexpedia\/moving-average) specialist.\n\nThere are a million different ways to grab some pips\\!\n\nIn this lesson, as you learn about these indicators, think of each as a new tool that you can add to that toolbox of yours.\n\nYou might not necessarily use all of these tools, but it’s always nice to have plenty of options, right?\n\nYou might even find one that you understand and are comfortable enough to master on its own. Now, enough about tools already\\!\n\nLet’s get started\\!\n\n## Bollinger Bands\nBollinger Bands, a technical indicator developed by [John Bollinger](https:\/\/en.wikipedia.org\/wiki\/John_Bollinger \"John Bollinger\"), are used to measure a **market’s volatility** and identify “overbought” or “oversold” conditions.\n\n![John Bollinger](https:\/\/bpcdn.co\/images\/2011\/02\/john-bollinger.jpg)\n\nJohn Bollinger\n\nBasically, this little tool tells us whether the market is quiet or whether the market is LOUD\\!\n\n**When the market is quiet, the bands contract, and when the market is LOUD, the bands expand.**\n\nLook at the chart below. The Bollinger Bands (BB) is a **chart overlay** indicator meaning it’s displayed over the price.\n\n![Bollinger Bands](https:\/\/bpcdn.co\/images\/2016\/05\/grade5-bollinger-band.png)\n\nNotice how when the price is quiet, the bands are close together. When the price moves up, the bands spread apart.\n\nThe upper and lower bands measure **volatility** or the degree of *variation* of prices over time.\n\nBecause Bollinger Bands measures volatility, the bands adjust automatically to changing market conditions.\n\nThat’s all there is to it. Yes, we could go on and bore you by going into the history of the Bollinger Bands, how it is calculated, the mathematical formulas behind it, and so on and so forth, but we really didn’t feel like typing it all out.\n\nOkay fine fine, we’ll give a brief description…\n\n## What are Bollinger Bands?\nBollinger Bands are typically plotted as three lines:\n\n1. An upper band\n2. A middle line\n3. A lower band\n\nThe middle line of the indicator is a simple moving average (SMA).\n\nMost charting programs default to a 20-period, which is fine for most traders, but you can experiment with different moving average lengths after you get a little experience applying Bollinger Bands.\n\nThe upper and lower bands, by default, represent **two standard deviations** above and below the middle line (moving average).\n\nIf you’re freaking out because you’re not familiar with standard deviations.\n\nHave no fear.\n\nThe concept of standard deviation (SD) is just a measure of how spread out numbers are.\n\nIf the upper and lower bands are **1 standard deviation,** this means that about 68% of price moves that have occurred recently are CONTAINED within these bands.\n\nIf the upper and lower bands are **2 standard deviations**, this means that about 95% of price moves that have occurred recently are CONTAINED within these bands.\n\nYou’re probably falling asleep let’s hit you with an image.\n\n[![Standard Deviation](https:\/\/bpcdn.co\/images\/2011\/02\/16171058\/standard-deviation.png)](https:\/\/bpcdn.co\/images\/2011\/02\/16171058\/standard-deviation.png)\n\nAs you can see, the higher the value of SD you use for the bands, the more prices the bands “capture”.\n\nYou can try out different standard deviations for the bands once you become more familiar with how they work.\n\nIn all honesty, to get started, you don’t need to know most of this stuff. We think it’s more important that we show you some ways you can apply the Bollinger Bands to your trading.\n\nNote: If you really want to learn about the calculations of Bollinger Bands, check out John’s book, [Bollinger on Bollinger Bands,](https:\/\/www.amazon.com\/Bollinger-Bands-John\/dp\/0071373683) or check out our lovely Forexpedia page on [Bollinger Bands](https:\/\/www.babypips.com\/forexpedia\/bollinger-bands).\n\n## Bollinger Bands as a Volatility Indicator\nBollinger Bands provide a visual representation of volatility.\n\nThe **width of the bands** (the distance between the upper and lower bands) increases when volatility is high and contracts when volatility is low:\n\n- When the bands are far apart, it indicates high volatility.\n- When the bands are close together, it indicates low volatility.\n\nThis is because the standard deviation is larger when price fluctuations are more extreme, leading to wider bands.\n\n## The Bollinger Bounce\nOne thing you should know about Bollinger Bands is that the **price tends to return to the middle of the bands**.\n\nThat is the whole idea behind the “**Bollinger Bounce**.”\n\nBy looking at the chart below, can you tell us where the price might go next?\n\n![Price reached the top of the Bollinger band](https:\/\/bpcdn.co\/images\/2016\/05\/grade5-bollinger-resistance-start.png)\n\nIf you said down, then you are correct! As you can see, the price settled back down towards the **middle area of the bands**.\n\n![Price bounces back towards the middle of the Bollinger Bands](https:\/\/bpcdn.co\/images\/2016\/05\/grade5-bollinger-resistance-end.png)\n\nWhat you just saw was a classic Bollinger Bounce. The reason these bounces occur is that the **Bollinger bands act like dynamic support and resistance levels**.\n\nThe longer the time frame you are in, the stronger these bands tend to be.\n\nMany traders have developed systems that thrive on these bounces and this strategy is best used when the market is **ranging** and there is no clear trend.\n\nYou only want to trade this approach when price is trendless. **So be mindful of the WIDTH of the bands**.\n\nAvoid trading the Bollinger Bounce when the bands are **expanding**, because this usually means the price is not moving within a range but in a TREND\\!\n\nInstead, look for these conditions when the **bands are stable or even contracting.**\n\nNow let’s look at a way to use Bollinger Bands when the market is TRENDING…\n\n## Bollinger Squeeze\nThe Bollinger Squeeze occurs when the bands come close together, indicating a period of low volatility. This tight constriction is called the “**squeeze**.”\n\nThe squeeze suggests that a significant price move could be coming.\n\nIf the candles start to break out above the TOP band, then the move will usually continue to go UP.\n\nIf the candles start to break out below the BOTTOM band, then the price will usually continue to go DOWN.\n\n![Bollinger Band squeeze](https:\/\/bpcdn.co\/images\/2016\/05\/grade5-bollinger-squeeze-start.png)\n\nLooking at the chart above, you can see the bands squeezing together. The price has just started to break out of the top band. Based on this information, where do you think the price will go?\n\n![Bollinger Band Squeeze Expands](https:\/\/bpcdn.co\/images\/2016\/05\/grade5-bollinger-squeeze-end.png)\n\nIf you said up, you are correct again\\!\n\nThis is how a typical Bollinger Squeeze works.\n\nThis strategy is designed for you to catch a move as early as possible.\n\nSetups like these don’t occur every day, but you can probably spot them a few times a week if you are looking at a 15-minute chart.\n\nThere are many other things you can do with Bollinger Bands, but these are the two most common strategies associated with them.\n\nGo ahead and add the indicator to your charts and watch how prices move with respect to the three bands. Once you’ve got the hang of it, try changing up some of the indicator’s parameters.\n\nIt’s time to put this in your trader’s toolbox before we move on to the next indicator.","meta_canonical":null}

3. Robots.txt Check

Query:

Response:

4. Spam/Ban Check

Query:

Response:

5. Seen Status Check

ℹ️ Skipped - page is already crawled

📄

INDEXABLE

✅

CRAWLED

23 days ago

🤖

ROBOTS ALLOWED

Page Info Filters

Filter	Status	Condition	Details
HTTP status	PASS	`download_http_code = 200`	HTTP 200
Age cutoff	PASS	`download_stamp > now() - 6 MONTH`	0.8 months ago
History drop	PASS	`isNull(history_drop_reason)`	No drop reason
Spam/ban	PASS	`fh_dont_index != 1 AND ml_spam_score = 0`	ml_spam_score=0
Canonical	PASS	`meta_canonical IS NULL OR = '' OR = src_unparsed`	Not set

Page Details

Property	Value
URL	https://www.babypips.com/learn/forex/bollinger-bands
Last Crawled	2026-03-15 21:32:43 (23 days ago)
First Indexed	2017-06-04 05:55:50 (8 years ago)
HTTP Status Code	200
Meta Title	How to Use Bollinger Bands - Babypips.com
Meta Description	Learn how forex traders use Bollinger Bands as dynamic support and resistance levels.
Meta Canonical	null
Boilerpipe Text	Congratulations on making it to the 5th grade! Each time you make it to the next grade, you continue to add more and more tools to your trader’s technical analysis (TA) toolbox. “What’s a trader’s toolbox?” you ask. Simple! Let’s compare trading to building a house. You wouldn’t use a hammer on a screw, right? Nor would you use a buzz saw to drive in nails. There’s a proper tool for each situation. Just like in trading, certain technical indicators are best used for particular environments or situations . So, the more tools you have, the better you can ADAPT to the ever-changing market environment. Or if you want to focus on a few specific trading environments or tools, that’s cool too. It’s good to have a specialist when installing your electricity or plumbing in a house, just like it’s cool to be a Bollinger Bands or Moving Average specialist. There are a million different ways to grab some pips! In this lesson, as you learn about these indicators, think of each as a new tool that you can add to that toolbox of yours. You might not necessarily use all of these tools, but it’s always nice to have plenty of options, right? You might even find one that you understand and are comfortable enough to master on its own. Now, enough about tools already! Let’s get started! Bollinger Bands Bollinger Bands, a technical indicator developed by John Bollinger , are used to measure a market’s volatility and identify “overbought” or “oversold” conditions. John Bollinger Basically, this little tool tells us whether the market is quiet or whether the market is LOUD! When the market is quiet, the bands contract, and when the market is LOUD, the bands expand. Look at the chart below. The Bollinger Bands (BB) is a chart overlay indicator meaning it’s displayed over the price. Notice how when the price is quiet, the bands are close together. When the price moves up, the bands spread apart. The upper and lower bands measure volatility or the degree of variation of prices over time. Because Bollinger Bands measures volatility, the bands adjust automatically to changing market conditions. That’s all there is to it. Yes, we could go on and bore you by going into the history of the Bollinger Bands, how it is calculated, the mathematical formulas behind it, and so on and so forth, but we really didn’t feel like typing it all out. Okay fine fine, we’ll give a brief description… What are Bollinger Bands? Bollinger Bands are typically plotted as three lines: An upper band A middle line A lower band The middle line of the indicator is a simple moving average (SMA). Most charting programs default to a 20-period, which is fine for most traders, but you can experiment with different moving average lengths after you get a little experience applying Bollinger Bands. The upper and lower bands, by default, represent two standard deviations above and below the middle line (moving average). If you’re freaking out because you’re not familiar with standard deviations. Have no fear. The concept of standard deviation (SD) is just a measure of how spread out numbers are. If the upper and lower bands are 1 standard deviation, this means that about 68% of price moves that have occurred recently are CONTAINED within these bands. If the upper and lower bands are 2 standard deviations , this means that about 95% of price moves that have occurred recently are CONTAINED within these bands. You’re probably falling asleep let’s hit you with an image. As you can see, the higher the value of SD you use for the bands, the more prices the bands “capture”. You can try out different standard deviations for the bands once you become more familiar with how they work. In all honesty, to get started, you don’t need to know most of this stuff. We think it’s more important that we show you some ways you can apply the Bollinger Bands to your trading. Note: If you really want to learn about the calculations of Bollinger Bands, check out John’s book, Bollinger on Bollinger Bands, or check out our lovely Forexpedia page on Bollinger Bands . Bollinger Bands as a Volatility Indicator Bollinger Bands provide a visual representation of volatility. The width of the bands (the distance between the upper and lower bands) increases when volatility is high and contracts when volatility is low: When the bands are far apart, it indicates high volatility. When the bands are close together, it indicates low volatility. This is because the standard deviation is larger when price fluctuations are more extreme, leading to wider bands. The Bollinger Bounce One thing you should know about Bollinger Bands is that the price tends to return to the middle of the bands . That is the whole idea behind the “ Bollinger Bounce .” By looking at the chart below, can you tell us where the price might go next? If you said down, then you are correct! As you can see, the price settled back down towards the middle area of the bands . What you just saw was a classic Bollinger Bounce. The reason these bounces occur is that the Bollinger bands act like dynamic support and resistance levels . The longer the time frame you are in, the stronger these bands tend to be. Many traders have developed systems that thrive on these bounces and this strategy is best used when the market is ranging and there is no clear trend. You only want to trade this approach when price is trendless. So be mindful of the WIDTH of the bands . Avoid trading the Bollinger Bounce when the bands are expanding , because this usually means the price is not moving within a range but in a TREND! Instead, look for these conditions when the bands are stable or even contracting. Now let’s look at a way to use Bollinger Bands when the market is TRENDING… Bollinger Squeeze The Bollinger Squeeze occurs when the bands come close together, indicating a period of low volatility. This tight constriction is called the “ squeeze .” The squeeze suggests that a significant price move could be coming. If the candles start to break out above the TOP band, then the move will usually continue to go UP. If the candles start to break out below the BOTTOM band, then the price will usually continue to go DOWN. Looking at the chart above, you can see the bands squeezing together. The price has just started to break out of the top band. Based on this information, where do you think the price will go? If you said up, you are correct again! This is how a typical Bollinger Squeeze works. This strategy is designed for you to catch a move as early as possible. Setups like these don’t occur every day, but you can probably spot them a few times a week if you are looking at a 15-minute chart. There are many other things you can do with Bollinger Bands, but these are the two most common strategies associated with them. Go ahead and add the indicator to your charts and watch how prices move with respect to the three bands. Once you’ve got the hang of it, try changing up some of the indicator’s parameters. It’s time to put this in your trader’s toolbox before we move on to the next indicator.
Markdown	## [Babypips](https://www.babypips.com/) - [AnalysisPremium](https://www.babypips.com/analysis) - [News](https://www.babypips.com/news) - [Trading](https://www.babypips.com/trading) - [Crypto](https://www.babypips.com/trading/crypto) - [![Chart Art: Bitcoin (BTC/USD) Triangle Breakout and Retest](https://bpcdn.co/images/2024/07/24191710/chart-art-btc-usd-2024-360x188.png)](https://www.babypips.com/trading/chart-art-crypto-bitcoin-btcusd-triangle-breakout-retest-2026-03-05) [Chart Art: Bitcoin (BTC/USD) Triangle Breakout and Retest](https://www.babypips.com/trading/chart-art-crypto-bitcoin-btcusd-triangle-breakout-retest-2026-03-05) - [![Chart Art: Bitcoin (BTC/USD) Triangle Breakout Soon?](https://bpcdn.co/images/2024/07/24191710/chart-art-btc-usd-2024-360x188.png)](https://www.babypips.com/trading/chart-art-crypto-bitcoin-btcusd-triangle-breakout-soon-2026-02-25) [Chart Art: Bitcoin (BTC/USD) Triangle Breakout Soon?](https://www.babypips.com/trading/chart-art-crypto-bitcoin-btcusd-triangle-breakout-soon-2026-02-25) - [![Chart Art: Can Bitcoin (BTC/USD) Find Support at This Channel Bottom?](https://bpcdn.co/images/2024/07/24191710/chart-art-btc-usd-2024-360x188.png)](https://www.babypips.com/trading/chart-art-crypto-bitcoin-find-support-channel-bottom-2026-01-26) [Chart Art: Can Bitcoin (BTC/USD) Find Support at This Channel Bottom?](https://www.babypips.com/trading/chart-art-crypto-bitcoin-find-support-channel-bottom-2026-01-26) - [![Chart Art: Bitcoin (BTC/USD) Testing Support, Bounce or Break Next?](https://bpcdn.co/images/2024/07/24191710/chart-art-btc-usd-2024-360x188.png)](https://www.babypips.com/trading/chart-art-bitcoin-btc-usd-testing-support-bounce-or-break-next-2025-10-16) [Chart Art: Bitcoin (BTC/USD) Testing Support, Bounce or Break Next?](https://www.babypips.com/trading/chart-art-bitcoin-btc-usd-testing-support-bounce-or-break-next-2025-10-16) - [Trading Systems](https://www.babypips.com/trading/trading-systems) - [![How to Choose a Prop Firm](https://bpcdn.co/images/2026/03/07091758/How-to-Choose-a-Prop-Firm-BabyPips-Google-Docs-03-07-2026_09_17_AM-360x200.png)](https://www.babypips.com/trading/how-to-choose-a-prop-firm) [How to Choose a Prop Firm](https://www.babypips.com/trading/how-to-choose-a-prop-firm) - [![Cashback Forex Explained: How Traders Can Reduce Costs and Improve Net Returns](https://bpcdn.co/images/2026/02/28103117/babypip_Splash-720x400-1-360x200.png)](https://www.babypips.com/trading/cashback-forex-explained-how-traders-can-reduce-costs-and-improve-net-returns) [Cashback Forex Explained: How Traders Can Reduce Costs and Improve Net Returns](https://www.babypips.com/trading/cashback-forex-explained-how-traders-can-reduce-costs-and-improve-net-returns) - [![Leverage Without the Drama: A Beginner’s Guide to Margin, Liquidation, and Risk of Ruin](https://bpcdn.co/images/2026/02/21101427/3-Babypips_720x400-360x200.png)](https://www.babypips.com/trading/leverage-without-the-drama-a-beginners-guide-to-margin-liquidation-and-risk-of-ruin) [Leverage Without the Drama: A Beginner’s Guide to Margin, Liquidation, and Risk of Ruin](https://www.babypips.com/trading/leverage-without-the-drama-a-beginners-guide-to-margin-liquidation-and-risk-of-ruin) - [![The Role of Intelligent Automation in Building Consistent Forex Trading Processes](https://bpcdn.co/images/2026/02/21102139/THUMBNAIL-Article-2-360x200.png)](https://www.babypips.com/trading/the-role-of-intelligent-automation-in-building-consistent-forex-trading-processes) [The Role of Intelligent Automation in Building Consistent Forex Trading Processes](https://www.babypips.com/trading/the-role-of-intelligent-automation-in-building-consistent-forex-trading-processes) - [Psychology](https://www.babypips.com/trading/psychology) - [![4 Trading Adjustments to Make in a High Volatility Environment](https://bpcdn.co/images/2021/03/05142151/High-Volatility-Trading-HP-360x188.png)](https://www.babypips.com/trading/psychology-4-adjustments-highly-volatile-environment-2026-03-13) [4 Trading Adjustments to Make in a High Volatility Environment](https://www.babypips.com/trading/psychology-4-adjustments-highly-volatile-environment-2026-03-13) - [![5 Simple Habits That Lower Your Trading Risk Exposure](https://bpcdn.co/images/2020/05/01221229/Habits-that-lower-your-risk-exposure-HP-360x188.png)](https://www.babypips.com/trading/psychology-5-habits-that-lower-your-risk-exposure-2026-03-11) [5 Simple Habits That Lower Your Trading Risk Exposure](https://www.babypips.com/trading/psychology-5-habits-that-lower-your-risk-exposure-2026-03-11) - [![5 Useful Tips for Surviving a Market Crash](https://bpcdn.co/images/2022/10/14140644/tips-for-surviving-a-market-crash-360x188.png)](https://www.babypips.com/trading/psychology-5-useful-tips-surviving-market-crash-2026-03-09) [5 Useful Tips for Surviving a Market Crash](https://www.babypips.com/trading/psychology-5-useful-tips-surviving-market-crash-2026-03-09) - [![How to Deal With “Black Swan” Event Losses](https://bpcdn.co/images/2022/06/06195320/How-to-deal-with-black-swan-event-losses-360x188.png)](https://www.babypips.com/trading/psychology-how-to-deal-black-swan-event-losses-2026-03-05) [How to Deal With “Black Swan” Event Losses](https://www.babypips.com/trading/psychology-how-to-deal-black-swan-event-losses-2026-03-05) - [Technical Analysis](https://www.babypips.com/trading/technical-analysis) - [![Chart Art: USD/CHF Tests Potential Resistance at .7900](https://bpcdn.co/images/2024/09/23090513/chart-art-usdchf-usd-360x188.png)](https://www.babypips.com/trading/chart-art-forex-usdchf-tests-potential-resistance-at-7900-2026-03-13) [Chart Art: USD/CHF Tests Potential Resistance at .7900](https://www.babypips.com/trading/chart-art-forex-usdchf-tests-potential-resistance-at-7900-2026-03-13) - [![Chart Art: Gold (XAU/USD) Reversal Pattern Forming?](https://bpcdn.co/images/2024/07/25133256/chart-art-xauusd-360x188.png)](https://www.babypips.com/trading/chart-art-commodities-gold-reversal-pattern-forming-2026-03-13) [Chart Art: Gold (XAU/USD) Reversal Pattern Forming?](https://www.babypips.com/trading/chart-art-commodities-gold-reversal-pattern-forming-2026-03-13) - [![Chart Art: Bitcoin (BTC/USD) Longer-Term Trend Still Intact, Pullback Soon?](https://bpcdn.co/images/2024/07/24191710/chart-art-btc-usd-2024-360x188.png)](https://www.babypips.com/trading/chart-art-crypto-bitcoin-btcusd-long-term-trend-still-intact-pullback-2026-03-12) [Chart Art: Bitcoin (BTC/USD) Longer-Term Trend Still Intact, Pullback Soon?](https://www.babypips.com/trading/chart-art-crypto-bitcoin-btcusd-long-term-trend-still-intact-pullback-2026-03-12) - [![Chart Art: AUD/USD Pullback Opportunities After .7200 Rejection](https://bpcdn.co/images/2024/09/05084824/chart-art-audusd-aud-360x188.png)](https://www.babypips.com/trading/chart-art-forex-audusd-pullback-opportunities-after-7200-rejection-2026-03-12) [Chart Art: AUD/USD Pullback Opportunities After .7200 Rejection](https://www.babypips.com/trading/chart-art-forex-audusd-pullback-opportunities-after-7200-rejection-2026-03-12) - [Trade Ideas](https://www.babypips.com/trading/trade-ideas) - [![Premium Watchlist Recap: Australia GDP (Q4 2025)](https://bpcdn.co/images/2026/03/09144448/australia-gdp-recap-2026-03-09-360x188.png)](https://www.babypips.com/analysis/watchlist-recap-2026-03-06-forex-audchf-australia-q4-gdp) [Premium Watchlist Recap: Australia GDP (Q4 2025)](https://www.babypips.com/analysis/watchlist-recap-2026-03-06-forex-audchf-australia-q4-gdp) - [![TA Alert of the Day: Overbought Stochastic Crossover Suggests USD/JPY Rally May Be Losing Steam](https://bpcdn.co/images/2026/03/05171927/USDJPY-Overbought-Stochastic-Crossover-2026-03-05-360x187.png)](https://www.babypips.com/trading/ta-alert-stochastic-bearish-crossover-2026-03-05) [TA Alert of the Day: Overbought Stochastic Crossover Suggests USD/JPY Rally May Be Losing Steam](https://www.babypips.com/trading/ta-alert-stochastic-bearish-crossover-2026-03-05) - [![TA Alert of the Day: EUR/GBP Momentum Fades as Bearish MACD Crossover Warns of Pullback Risk](https://bpcdn.co/images/2026/03/03172502/EURGBP-MACD-Crossover-2026-03-03-360x187.png)](https://www.babypips.com/trading/ta-alert-eurgbp-macd-bearish-crossover-2026-03-02) [TA Alert of the Day: EUR/GBP Momentum Fades as Bearish MACD Crossover Warns of Pullback Risk](https://www.babypips.com/trading/ta-alert-eurgbp-macd-bearish-crossover-2026-03-02) - [![TA Alert of the Day: ETH Rebounds Above \$2,000 as SMA Bullish Crossover Flashes](https://bpcdn.co/images/2026/03/02191135/ETH-rebounds-above-2000-360x187.png)](https://www.babypips.com/trading/ta-alert-ethusd-bullish-sma-crossover-2026-03-02) [TA Alert of the Day: ETH Rebounds Above \$2,000 as SMA Bullish Crossover Flashes](https://www.babypips.com/trading/ta-alert-ethusd-bullish-sma-crossover-2026-03-02) - [Learn Forex](https://www.babypips.com/learn) - [Forex Glossary](https://www.babypips.com/forexpedia) Forexpedia The original forex trading glossary From basic trading terms to trading jargon, you can find the explanation for a long list of trading terms here. [Go to Forexpedia](https://www.babypips.com/forexpedia) ![](https://bpcdn.co/packs/media/images/e2ac568ca37476c3174f.svg) - [Trading Quizzes](https://www.babypips.com/quizzes) Test Your Knowledge Challenge yourself with our quizzes\! Find out just how much you've learned by taking any of our 50+ trading quizzes. You can even see how your scores compare to others\! [View Quiz Library](https://www.babypips.com/quizzes) ![](https://bpcdn.co/packs/media/images/c2507b218ed566611f0e.svg) - [How to Trade Forex](https://www.babypips.com/learn/forex) The School of Pipsology New to forex? Learn how to trade forex in a fun and easy-to-understand format. Track your progress and learn at your own pace. [Start Learning](https://www.babypips.com/learn/forex) ![](https://bpcdn.co/packs/media/images/ca3e5a37d5f4b3ee2736.svg) - [Learn Crypto](https://www.babypips.com/crypto) - [Crypto Guides](https://www.babypips.com/crypto/guides) Crypto Guides Learn about bitcoin and altcoins. In our crypto guides, we explore bitcoin and other popular coins and tokens to help you better navigate the crypto jungle. [Explore](https://www.babypips.com/crypto/guides) ![](https://bpcdn.co/packs/media/images/c491826a65d63cfd5633.webp) - [Crypto Glossary](https://www.babypips.com/crypto/glossary) Decryptopedia™ The ultimate cryptocurrency glossary Decryptopedia™ helps you decipher crypto jargon back into plain English. Learn the terms that you’ll come across on your crypto journey. [Learn New Lingo](https://www.babypips.com/crypto/glossary) ![](https://bpcdn.co/packs/media/images/66fc13cd11069a4dc0d6.webp) - [Crypto Quizzes](https://www.babypips.com/crypto/quizzes) Crypto Quizzes Test your crypto knowledge Find out just how much you’ve learned in our School of Crypto by taking our crypto quizzes. How will you score against other quiz takers? [Test Yourself](https://www.babypips.com/crypto/quizzes) ![](https://bpcdn.co/packs/media/images/8375706a3845f7e3643e.webp) - [Crypto School](https://www.babypips.com/crypto/learn) School of Crypto New to crypto? Learn about crypto in a fun and easy-to-understand format. Track your progress and learn at your own pace. [Start Learning](https://www.babypips.com/crypto/learn) ![](https://bpcdn.co/packs/media/images/9d9ba698f701cd56eaf0.webp) - [Forums](https://forums.babypips.com/) - [Calendar](https://www.babypips.com/economic-calendar) - [Tools](https://www.babypips.com/tools) - [Currency Correlation](https://www.babypips.com/tools/currency-correlation) Currency Correlation How do different currency pairs move in relation to each other? Our Currency Correlation Calculator helps you identify the strength of relationships between currency pairs. [Give it a try\!](https://www.babypips.com/tools/currency-correlation) ![](https://bpcdn.co/packs/media/images/dc1c9b36a92d67739d4f.svg) ![](https://www.babypips.com/learn/forex/media/images/screen-currency_correlation.png) - [Forex Market Hours](https://www.babypips.com/tools/forex-market-hours) Market Hours Visualizer Easily visualize forex market hours Instantly find out whether the forex market is open or what the current trading session is based on your local timezone. [Give it a try\!](https://www.babypips.com/tools/forex-market-hours) ![](https://bpcdn.co/packs/media/images/9038289edbb104f50d2d.svg) ![](https://www.babypips.com/learn/forex/media/images/screen-market_hours.png) - [Risk-On Risk-Off Meter](https://www.babypips.com/tools/risk-on-risk-off-meter) Risk-On Risk-Off Meter To risk, or not to risk? Our Risk-On/Off Meter helps you gauge risk sentiment of the market & make trades best suitable to the current market conditions. [Give it a try\!](https://www.babypips.com/tools/risk-on-risk-off-meter) ![](https://bpcdn.co/packs/media/images/0c5e3872eba1a230b15a.svg) ![](https://www.babypips.com/learn/forex/media/images/screen-risk_meter.png) - [Pivot Point Calculator](https://www.babypips.com/tools/pivot-point-calculator) Pivot Point Calculator Quickly identify support and resistance levels Determine significant support and resistance levels with the help of pivot points. [Give it a try\!](https://www.babypips.com/tools/pivot-point-calculator) ![](https://bpcdn.co/packs/media/images/73f62bc3e68ac7dd8742.svg) ![](https://www.babypips.com/learn/forex/media/images/screen-pivot_point.png) - [Gain & Loss Calculator](https://www.babypips.com/tools/gain-loss-percentage-calculator) Gain & Loss Calculator What's your percentage gain... or loss? Our gain and loss percentage calculator quickly tells you the percentage of your account balance that you have won or lost. [Give it a try\!](https://www.babypips.com/tools/gain-loss-percentage-calculator) ![](https://bpcdn.co/packs/media/images/e8fb6a9b6b5585da99dc.svg) ![](https://www.babypips.com/learn/forex/media/images/screen-gain_loss.png) - [Pip Value Calculator](https://www.babypips.com/tools/pip-value-calculator) Pip Value Calculator How much is each pip worth? Determine the value per pip in your trading account's currency so you can better manage your risk per trade. [Give it a try\!](https://www.babypips.com/tools/pip-value-calculator) ![](https://bpcdn.co/packs/media/images/f4fcb17605c39f5cf06c.svg) ![](https://www.babypips.com/learn/forex/media/images/screen-pip_value.png) - [Position Size Calculator](https://www.babypips.com/tools/position-size-calculator) Position Size Calculator Practice proper position sizing Find the approximate amount of currency units to buy or sell so you can control your maximum risk per position. [Give it a try\!](https://www.babypips.com/tools/position-size-calculator) ![](https://bpcdn.co/packs/media/images/1ecc20be46b4e6b168f2.svg) ![](https://www.babypips.com/learn/forex/media/images/screen-position_size.png) - [MarketMilk™](https://marketmilk.babypips.com/) Search - [Sign In](https://www.babypips.com/account/sign-in) \\| [Join](https://www.babypips.com/account/join) View Menu - [Sign In](https://www.babypips.com/account/sign-in) / [Join](https://www.babypips.com/account/join) - [Home](https://www.babypips.com/) - [MarketMilk™](https://marketmilk.babypips.com/) - [Currency Strength Meter](https://marketmilk.babypips.com/currency-strength) - [Currency Volatility Meter](https://marketmilk.babypips.com/currency-volatility) - [FX Market Snapshot](https://marketmilk.babypips.com/) - [Top Gainers and Losers](https://marketmilk.babypips.com/market-movers) - [Crypto Market Snapshot](https://marketmilk.babypips.com/crypto) - [Crypto Strength Meter](https://marketmilk.babypips.com/crypto/currency-strength) - [AnalysisPremium](https://www.babypips.com/analysis) - [News](https://www.babypips.com/news) - [Trading](https://www.babypips.com/trading) - [Trade Ideas](https://www.babypips.com/trading/trade-ideas) - [Technical Analysis](https://www.babypips.com/trading/technical-analysis) - [Psychology](https://www.babypips.com/trading/psychology) - [Trading Systems](https://www.babypips.com/trading/trading-systems) - [Crypto](https://www.babypips.com/trading/crypto) - [Learn Forex](https://www.babypips.com/learn) - [How to Trade Forex](https://www.babypips.com/learn/forex) - [Forex Glossary](https://www.babypips.com/forexpedia) - [Trading Quizzes](https://www.babypips.com/quizzes) - [Learn Crypto](https://www.babypips.com/crypto) - [Crypto School](https://www.babypips.com/crypto/learn) - [Crypto Glossary](https://www.babypips.com/crypto/glossary) - [Crypto Quizzes](https://www.babypips.com/crypto/quizzes) - [Crypto Guides](https://www.babypips.com/crypto/guides) - [Forums](https://forums.babypips.com/) - [Beginner Questions](https://forums.babypips.com/c/beginner-questions) - [Trading Systems](https://forums.babypips.com/c/trading-systems) - [Calendar](https://www.babypips.com/economic-calendar) - [Economic Calendar](https://www.babypips.com/economic-calendar) - [Tools](https://www.babypips.com/tools) - [Currency Correlation](https://www.babypips.com/tools/currency-correlation) - [Forex Market Hours](https://www.babypips.com/tools/forex-market-hours) - [Risk-On Risk-Off Meter](https://www.babypips.com/tools/risk-on-risk-off-meter) - [Pivot Point Calculator](https://www.babypips.com/tools/pivot-point-calculator) - [Gain & Loss Calculator](https://www.babypips.com/tools/gain-loss-percentage-calculator) - [Pip Value Calculator](https://www.babypips.com/tools/pip-value-calculator) - [Position Size Calculator](https://www.babypips.com/tools/position-size-calculator) - [Regulatory Organizations](https://www.babypips.com/tools/forex-regulation) 1. [School of Pipsology](https://www.babypips.com/learn/forex) 2. [Elementary](https://www.babypips.com/learn/forex/elementary) 3. [Popular Chart Indicators](https://www.babypips.com/learn/forex/elementary#common-chart-indicators) # How to Use Bollinger Bands Listen Translate 1. [English](https://www.babypips.com/learn/forex/bollinger-bands) 2. [العربية (Arabic)](https://www.babypips.com/ar/learn/forex/bollinger-bands) 3. [Deutsch (German)](https://www.babypips.com/de/learn/forex/bollinger-bands) 4. [Español (Spanish)](https://www.babypips.com/es/learn/forex/bollinger-bands) 5. [Français (French)](https://www.babypips.com/fr/learn/forex/bollinger-bands) 6. [Bahasa Indonesia (Indonesian)](https://www.babypips.com/id/learn/forex/bollinger-bands) 7. [Italiano (Italian)](https://www.babypips.com/it/learn/forex/bollinger-bands) 8. [日本語 (Japanese)](https://www.babypips.com/ja/learn/forex/bollinger-bands) 9. [한국어 (Korean)](https://www.babypips.com/ko/learn/forex/bollinger-bands) 10. [Bahasa Melayu (Malay)](https://www.babypips.com/ms/learn/forex/bollinger-bands) 11. [Português (Portuguese)](https://www.babypips.com/pt/learn/forex/bollinger-bands) 12. [Portuguese (Brazilian)](https://www.babypips.com/pt-BR/learn/forex/bollinger-bands) 13. [ไทย (Thai)](https://www.babypips.com/th/learn/forex/bollinger-bands) 14. [Tagalog](https://www.babypips.com/tl/learn/forex/bollinger-bands) 15. [Tiếng Việt (Vietnamese)](https://www.babypips.com/vi/learn/forex/bollinger-bands) 16. [🔥 (Gen Z Slang)](https://www.babypips.com/z/learn/forex/bollinger-bands) 17. [简体中文 (Simplified Chinese)](https://www.babypips.com/zh-CN/learn/forex/bollinger-bands) 18. [繁體中文 (Traditional Chinese)](https://www.babypips.com/zh-TW/learn/forex/bollinger-bands) [Stay prepared and confident with exclusive content built to improve your daily prep, strategy development, and trade outcomes. Join Babypips Premium.](https://www.babypips.com/na/t/13) Partner Center Congratulations on making it to the 5th grade\! Each time you make it to the next grade, you continue to add more and more tools to your trader’s [technical analysis](https://www.babypips.com/forexpedia/technical-analysis) (TA) toolbox. “What’s a trader’s toolbox?” you ask. Simple\! [![Trader Toolbox](https://bpcdn.co/images/2011/02/16172052/trader-toolbox-360x273.png)](https://bpcdn.co/images/2011/02/16172052/trader-toolbox.png) Let’s compare trading to building a house. You wouldn’t use a hammer on a screw, right? Nor would you use a buzz saw to drive in nails. There’s a proper tool for each situation. Just like in trading, certain [technical indicators](https://www.babypips.com/forexpedia/technical-indicator) are best used for particular environments or situations. So, the more tools you have, the better you can ADAPT to the ever-changing market environment. Or if you want to focus on a few specific trading environments or tools, that’s cool too. It’s good to have a specialist when installing your electricity or plumbing in a house, just like it’s cool to be a [Bollinger Bands](https://www.babypips.com/forexpedia/bollinger-bands) or [Moving Average](https://www.babypips.com/forexpedia/moving-average) specialist. There are a million different ways to grab some pips\! In this lesson, as you learn about these indicators, think of each as a new tool that you can add to that toolbox of yours. You might not necessarily use all of these tools, but it’s always nice to have plenty of options, right? You might even find one that you understand and are comfortable enough to master on its own. Now, enough about tools already\! Let’s get started\! ## Bollinger Bands Bollinger Bands, a technical indicator developed by [John Bollinger](https://en.wikipedia.org/wiki/John_Bollinger "John Bollinger"), are used to measure a market’s volatility and identify “overbought” or “oversold” conditions. ![John Bollinger](https://bpcdn.co/images/2011/02/john-bollinger.jpg) John Bollinger Basically, this little tool tells us whether the market is quiet or whether the market is LOUD\! When the market is quiet, the bands contract, and when the market is LOUD, the bands expand. Look at the chart below. The Bollinger Bands (BB) is a chart overlay indicator meaning it’s displayed over the price. ![Bollinger Bands](https://bpcdn.co/images/2016/05/grade5-bollinger-band.png) Notice how when the price is quiet, the bands are close together. When the price moves up, the bands spread apart. The upper and lower bands measure volatility or the degree of variation of prices over time. Because Bollinger Bands measures volatility, the bands adjust automatically to changing market conditions. That’s all there is to it. Yes, we could go on and bore you by going into the history of the Bollinger Bands, how it is calculated, the mathematical formulas behind it, and so on and so forth, but we really didn’t feel like typing it all out. Okay fine fine, we’ll give a brief description… ## What are Bollinger Bands? Bollinger Bands are typically plotted as three lines: 1. An upper band 2. A middle line 3. A lower band The middle line of the indicator is a simple moving average (SMA). Most charting programs default to a 20-period, which is fine for most traders, but you can experiment with different moving average lengths after you get a little experience applying Bollinger Bands. The upper and lower bands, by default, represent two standard deviations above and below the middle line (moving average). If you’re freaking out because you’re not familiar with standard deviations. Have no fear. The concept of standard deviation (SD) is just a measure of how spread out numbers are. If the upper and lower bands are 1 standard deviation, this means that about 68% of price moves that have occurred recently are CONTAINED within these bands. If the upper and lower bands are 2 standard deviations, this means that about 95% of price moves that have occurred recently are CONTAINED within these bands. You’re probably falling asleep let’s hit you with an image. [![Standard Deviation](https://bpcdn.co/images/2011/02/16171058/standard-deviation.png)](https://bpcdn.co/images/2011/02/16171058/standard-deviation.png) As you can see, the higher the value of SD you use for the bands, the more prices the bands “capture”. You can try out different standard deviations for the bands once you become more familiar with how they work. In all honesty, to get started, you don’t need to know most of this stuff. We think it’s more important that we show you some ways you can apply the Bollinger Bands to your trading. Note: If you really want to learn about the calculations of Bollinger Bands, check out John’s book, [Bollinger on Bollinger Bands,](https://www.amazon.com/Bollinger-Bands-John/dp/0071373683) or check out our lovely Forexpedia page on [Bollinger Bands](https://www.babypips.com/forexpedia/bollinger-bands). ## Bollinger Bands as a Volatility Indicator Bollinger Bands provide a visual representation of volatility. The width of the bands (the distance between the upper and lower bands) increases when volatility is high and contracts when volatility is low: - When the bands are far apart, it indicates high volatility. - When the bands are close together, it indicates low volatility. This is because the standard deviation is larger when price fluctuations are more extreme, leading to wider bands. ## The Bollinger Bounce One thing you should know about Bollinger Bands is that the price tends to return to the middle of the bands. That is the whole idea behind the “Bollinger Bounce.” By looking at the chart below, can you tell us where the price might go next? ![Price reached the top of the Bollinger band](https://bpcdn.co/images/2016/05/grade5-bollinger-resistance-start.png) If you said down, then you are correct! As you can see, the price settled back down towards the middle area of the bands. ![Price bounces back towards the middle of the Bollinger Bands](https://bpcdn.co/images/2016/05/grade5-bollinger-resistance-end.png) What you just saw was a classic Bollinger Bounce. The reason these bounces occur is that the Bollinger bands act like dynamic support and resistance levels. The longer the time frame you are in, the stronger these bands tend to be. Many traders have developed systems that thrive on these bounces and this strategy is best used when the market is ranging and there is no clear trend. You only want to trade this approach when price is trendless. So be mindful of the WIDTH of the bands. Avoid trading the Bollinger Bounce when the bands are expanding, because this usually means the price is not moving within a range but in a TREND\! Instead, look for these conditions when the bands are stable or even contracting. Now let’s look at a way to use Bollinger Bands when the market is TRENDING… ## Bollinger Squeeze The Bollinger Squeeze occurs when the bands come close together, indicating a period of low volatility. This tight constriction is called the “squeeze.” The squeeze suggests that a significant price move could be coming. If the candles start to break out above the TOP band, then the move will usually continue to go UP. If the candles start to break out below the BOTTOM band, then the price will usually continue to go DOWN. ![Bollinger Band squeeze](https://bpcdn.co/images/2016/05/grade5-bollinger-squeeze-start.png) Looking at the chart above, you can see the bands squeezing together. The price has just started to break out of the top band. Based on this information, where do you think the price will go? ![Bollinger Band Squeeze Expands](https://bpcdn.co/images/2016/05/grade5-bollinger-squeeze-end.png) If you said up, you are correct again\! This is how a typical Bollinger Squeeze works. This strategy is designed for you to catch a move as early as possible. Setups like these don’t occur every day, but you can probably spot them a few times a week if you are looking at a 15-minute chart. There are many other things you can do with Bollinger Bands, but these are the two most common strategies associated with them. Go ahead and add the indicator to your charts and watch how prices move with respect to the three bands. Once you’ve got the hang of it, try changing up some of the indicator’s parameters. It’s time to put this in your trader’s toolbox before we move on to the next indicator. Did this content help you? Please consider [supporting Babypips.com.](https://www.babypips.com/contribute) Your contribution will enable us to keep providing content — for free — to you and others. [Next Lesson How to Use BBTrend](https://www.babypips.com/learn/forex/bbtrend-by-john-bollinger) Elementary #### Your Progress [Sign in](https://www.babypips.com/account/sign-in) to unlock progress tracking. [View All Courses](https://www.babypips.com/learn/forex) 1. Grade 1 [Support and Resistance Levels](https://www.babypips.com/learn/forex/elementary#support-and-resistance-levels) 1. [What is Support and Resistance?](https://www.babypips.com/learn/forex/support-and-resistance) 2. [Trend Lines](https://www.babypips.com/learn/forex/trend-lines) 3. [Trend Channels](https://www.babypips.com/learn/forex/trend-channels) 4. [How to Trade Support and Resistance](https://www.babypips.com/learn/forex/trading-the-lines) 5. [Psychological Levels](https://www.babypips.com/learn/forex/psychological-level) 6. [Summary: Trading Support and Resistance](https://www.babypips.com/learn/forex/summary-trading-support-resistance) 2. Grade 2 [Japanese Candlesticks](https://www.babypips.com/learn/forex/elementary#japanese-candle-sticks) 1. [What is a Japanese Candlestick?](https://www.babypips.com/learn/forex/what-is-a-japanese-candlestick) 2. [Japanese Candlestick Anatomy](https://www.babypips.com/learn/forex/sexy-bodies-and-strange-shadows) 3. [Basic Japanese Candlestick Patterns](https://www.babypips.com/learn/forex/basic-candlestick-patterns) 4. [Single Candlestick Patterns](https://www.babypips.com/learn/forex/lone-rangers-single-candlestick-patterns) 5. [Dual Candlestick Patterns](https://www.babypips.com/learn/forex/double-trouble-dual-candlestick-patterns) 6. [Triple Candlestick Patterns](https://www.babypips.com/learn/forex/triple-candlestick-patterns) 7. [Japanese Candlestick Cheat Sheet](https://www.babypips.com/learn/forex/japanese-candlesticks-cheat-sheet) 8. [Candlesticks with Support and Resistance](https://www.babypips.com/learn/forex/candlestick_with_support_and_resistance) 9. [Common Mistakes That New Traders Make With Japanese Candlesticks](https://www.babypips.com/learn/forex/japanese-candlestick-trading-mistakes) 10. [Summary: Japanese Candlesticks](https://www.babypips.com/learn/forex/summary-of-candlesticks) 3. Grade 3 [Fibonacci](https://www.babypips.com/learn/forex/elementary#fibonacci) 1. [Fibonacci Trading](https://www.babypips.com/learn/forex/fibonacci-who) 2. [How to Use Fibonacci Retracements](https://www.babypips.com/learn/forex/fibonacci-retracement) 3. [Fibonacci Retracements are NOT Foolproof](https://www.babypips.com/learn/forex/when-fibonacci-fails) 4. [How to Use Fibonacci Retracement with Support and Resistance](https://www.babypips.com/learn/forex/combining-fibs-with-support-and-resistance) 5. [How to Use Fibonacci Retracement with Trend Lines](https://www.babypips.com/learn/forex/combining-fibs-with-trend-lines) 6. [How to Use Fibonacci Retracement with Japanese Candlesticks](https://www.babypips.com/learn/forex/combining-fibs-with-candlesticks) 7. [How to Use Fibonacci Extensions to Know When to Take Profit](https://www.babypips.com/learn/forex/fibonacci-extensions) 8. [How to Use Fibonacci to Place Your Stop so You Lose Less Money](https://www.babypips.com/learn/forex/placing-stops-with-fibs) 9. [Summary: Fibonacci Trading](https://www.babypips.com/learn/forex/summary-of-fibonacci) 4. Grade 4 [Moving Averages](https://www.babypips.com/learn/forex/elementary#moving-averages) 1. [What Are Moving Averages?](https://www.babypips.com/learn/forex/silky-smooth-moving-averages) 2. [Simple Moving Average (SMA) Explained](https://www.babypips.com/learn/forex/simple-moving-averages) 3. [Exponential Moving Average (EMA) Explained](https://www.babypips.com/learn/forex/exponential-moving-average) 4. [Simple vs. Exponential Moving Averages](https://www.babypips.com/learn/forex/sma-vs-ema) 5. [How to Use Moving Averages to Find the Trend](https://www.babypips.com/learn/forex/using-moving-averages) 6. [How to Use Moving Average Crossovers to Enter Trades](https://www.babypips.com/learn/forex/moving-average-crossover-trading) 7. [How to Use Moving Averages as Dynamic Support and Resistance Levels](https://www.babypips.com/learn/forex/dynamic-support-and-resistance) 8. [How to Use Moving Average Envelopes](https://www.babypips.com/learn/forex/how-to-use-moving-average-envelopes) 9. [How to Analyze Trends With Moving Average Ribbons](https://www.babypips.com/learn/forex/moving-average-ribbon) 10. [How to Trend Trade with Guppy Multiple Moving Average (GMMA)](https://www.babypips.com/learn/forex/guppy-multiple-moving-average) 11. [Summary: Using Moving Averages](https://www.babypips.com/learn/forex/summary-of-moving-averages) 5. Grade 5 [Popular Chart Indicators](https://www.babypips.com/learn/forex/elementary#common-chart-indicators) 1. [How to Use Bollinger Bands](https://www.babypips.com/learn/forex/bollinger-bands) 2. [How to Use BBTrend](https://www.babypips.com/learn/forex/bbtrend-by-john-bollinger) 3. [How to Use Keltner Channels](https://www.babypips.com/learn/forex/keltner-channel) 4. [How to Use the MACD Indicator](https://www.babypips.com/learn/forex/macd) 5. [How to Use Parabolic SAR](https://www.babypips.com/learn/forex/parabolic-sar) 6. [How to Use the Stochastic Indicator](https://www.babypips.com/learn/forex/stochastic) 7. [How to Use RSI (Relative Strength Index)](https://www.babypips.com/learn/forex/relative-strength-index) 8. [How to Use Williams %R (Williams Percent Range)](https://www.babypips.com/learn/forex/williams-r) 9. [How to Use ADX (Average Directional Index)](https://www.babypips.com/learn/forex/average-directional-index) 10. [Ichimoku Kinko Hyo](https://www.babypips.com/learn/forex/ichimoku-kinko-hyo) 11. [Trading with Multiple Chart Indicators](https://www.babypips.com/learn/forex/putting-it-all-together) 12. [What is the Best Technical Indicator in Forex?](https://www.babypips.com/learn/forex/best-technical-indicator-forex) 13. [Summary: Popular Chart Indicators](https://www.babypips.com/learn/forex/summary-common-chart-indicators) School of Pipsology Your Overall Progress Report Lessons Completed 266 of 444 [Unlock Tracking, Sign In](https://www.babypips.com/account/sign-in) Partner Center [![The5ers](https://bpcdn.co/photos/native_ads_broker_sponsor_ads/4/original/f19a909f0a123e9c3c3369ccc4c7cc13.png)](https://www.babypips.com/na/bs/4 "The5ers") [![TV](https://bpcdn.co/photos/native_ads_broker_sponsor_ads/1/original/ff12f446a3d64fbce696d9a2a356504c.png)](https://www.babypips.com/na/bs/1 "TV") What to Read Next... [![How to Choose a Prop Firm](https://bpcdn.co/images/2026/03/07091758/How-to-Choose-a-Prop-Firm-BabyPips-Google-Docs-03-07-2026_09_17_AM-360x200.png)](https://www.babypips.com/trading/how-to-choose-a-prop-firm) ### [How to Choose a Prop Firm](https://www.babypips.com/trading/how-to-choose-a-prop-firm) [Sponsored By![OneFunded](https://bpcdn.co/images/2025/11/07115717/154_48.png)](https://www.babypips.com/trading/how-to-choose-a-prop-firm) [![Fundies Cheat Sheet: Mar 16 – 21, 2026](https://bpcdn.co/images/2025/01/27133305/FX-Fundies-Cheat-Sheet-360x187.png)](https://www.babypips.com/analysis/fundies-cheat-sheet-mar-16-21-2026-kharg-island-fomc-central-bank-super-week) ### [Fundies Cheat Sheet: Mar 16 – 21, 2026](https://www.babypips.com/analysis/fundies-cheat-sheet-mar-16-21-2026-kharg-island-fomc-central-bank-super-week) 6 hours agoPremium [![FX Weekly Recap: March 9 – 13, 2026](https://bpcdn.co/images/2022/01/28203027/weekly-fx-market-recap-final-360x188.png)](https://www.babypips.com/analysis/forex-weekly-recap-2026-03-13) ### [FX Weekly Recap: March 9 – 13, 2026](https://www.babypips.com/analysis/forex-weekly-recap-2026-03-13) 2 days agoPremium [![4 Trading Adjustments to Make in a High Volatility Environment](https://bpcdn.co/images/2021/03/05142151/High-Volatility-Trading-HP-360x188.png)](https://www.babypips.com/trading/psychology-4-adjustments-highly-volatile-environment-2026-03-13) ### [4 Trading Adjustments to Make in a High Volatility Environment](https://www.babypips.com/trading/psychology-4-adjustments-highly-volatile-environment-2026-03-13) 2 days ago [![Event Guide: Canada’s CPI Report (February 2026)](https://bpcdn.co/images/2023/09/18093823/canada-cpi-report-2023-360x187.png)](https://www.babypips.com/analysis/event-guide-forex-canada-cpi-january-2026-03-13) ### [Event Guide: Canada’s CPI Report (February 2026)](https://www.babypips.com/analysis/event-guide-forex-canada-cpi-january-2026-03-13) 3 days agoPremium [![Why Tariff Fears Are Driving a New U.S. Dollar Rally](https://bpcdn.co/images/2026/03/13154540/tariff-fears-dollar-rally-360x188.png)](https://www.babypips.com/news/headline-why-tariff-fears-are-driving-a-new-us-dollar-rally-2026-03-13) ### [Why Tariff Fears Are Driving a New U.S. Dollar Rally](https://www.babypips.com/news/headline-why-tariff-fears-are-driving-a-new-us-dollar-rally-2026-03-13) 3 days ago [![Chart Art: USD/CHF Tests Potential Resistance at .7900](https://bpcdn.co/images/2024/09/23090513/chart-art-usdchf-usd-360x188.png)](https://www.babypips.com/trading/chart-art-forex-usdchf-tests-potential-resistance-at-7900-2026-03-13) ### [Chart Art: USD/CHF Tests Potential Resistance at .7900](https://www.babypips.com/trading/chart-art-forex-usdchf-tests-potential-resistance-at-7900-2026-03-13) 3 days ago [![Chart Art: Gold (XAU/USD) Reversal Pattern Forming?](https://bpcdn.co/images/2024/07/25133256/chart-art-xauusd-360x188.png)](https://www.babypips.com/trading/chart-art-commodities-gold-reversal-pattern-forming-2026-03-13) ### [Chart Art: Gold (XAU/USD) Reversal Pattern Forming?](https://www.babypips.com/trading/chart-art-commodities-gold-reversal-pattern-forming-2026-03-13) 3 days ago [![Financial & Forex Market Recap: March 12, 2026](https://bpcdn.co/images/2026/03/12173228/daily-ff-thumb-2026-03-12-360x195.png)](https://www.babypips.com/news/daily-forex-financial-market-news-recap-2026-03-12) ### [Financial & Forex Market Recap: March 12, 2026](https://www.babypips.com/news/daily-forex-financial-market-news-recap-2026-03-12) 3 days ago [![While the World Panics, the Aussie Is Rallying. What’s Up With That?\!](https://bpcdn.co/images/2026/03/12145356/aussie-winning-currency-360x188.png)](https://www.babypips.com/analysis/explainer-world-panic-aud-rallying-2026-03-12) ### [While the World Panics, the Aussie Is Rallying. What’s Up With That?\!](https://www.babypips.com/analysis/explainer-world-panic-aud-rallying-2026-03-12) 4 days ago [![Chart Art: Bitcoin (BTC/USD) Longer-Term Trend Still Intact, Pullback Soon?](https://bpcdn.co/images/2024/07/24191710/chart-art-btc-usd-2024-360x188.png)](https://www.babypips.com/trading/chart-art-crypto-bitcoin-btcusd-long-term-trend-still-intact-pullback-2026-03-12) ### [Chart Art: Bitcoin (BTC/USD) Longer-Term Trend Still Intact, Pullback Soon?](https://www.babypips.com/trading/chart-art-crypto-bitcoin-btcusd-long-term-trend-still-intact-pullback-2026-03-12) 4 days ago [![Event Guide: Canada’s Employment Report (February 2026)](https://bpcdn.co/images/2023/06/07184156/canada-employment-update-2023-v2-360x187.png)](https://www.babypips.com/analysis/event-guide-forex-canada-employment-data-february-2026-03-12) ### [Event Guide: Canada’s Employment Report (February 2026)](https://www.babypips.com/analysis/event-guide-forex-canada-employment-data-february-2026-03-12) 4 days agoPremium > Things may come to those who wait, but only the things left by those who hustle.Abraham Lincoln - [No. 1 FX broker in the US †](https://www.babypips.com/na/a/10/a) - [Trade 80+ FX pairs and over 2500 CFDs](https://www.babypips.com/na/a/10/b) - [Powerful tools for active traders](https://www.babypips.com/na/a/10/c) - [Spreads as low as 0.0\* with RAW Pricing.](https://www.babypips.com/na/a/10/d) Leveraged trading involves significant risk of loss and is not suitable for all investors. [OPEN AN ACCOUNT](https://www.babypips.com/na/a/10/cta) ![](https://ad.doubleclick.net/ddm/trackimp/N5877.151865BABYPIPS.COM2/B26160057.414221558;dc_trk_aid=606484669;dc_trk_cid=229647458;utm_source=babypips;utm_medium=display;cid=0010076551;ord=1773610364606;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;gdpr=false;gdpr_consent=;ltd=;dc_tdv=1) Learn Forex - [How to Trade Forex](https://www.babypips.com/learn/forex) - [Forex Quizzes](https://www.babypips.com/quizzes) - [Forex Forums](https://forums.babypips.com/) - [Forex Glossary](https://www.babypips.com/forexpedia) - [Forex Margin 101](https://www.babypips.com/learn/forex/what-is-margin-trading) - [Technical Analysis 101](https://www.babypips.com/learn/forex/elementary) - [Risk Management 101](https://www.babypips.com/learn/forex/undergraduate-senior) - [Prop Trading Firms 101](https://www.babypips.com/learn/forex/what-are-prop-trading-firms) Forex Tools - [MarketMilk™](https://marketmilk.babypips.com/) - [Currency Correlation Calculator](https://www.babypips.com/tools/currency-correlation) - [Economic Calendar](https://www.babypips.com/economic-calendar) - [Risk-On / Risk-Off Meter](https://www.babypips.com/tools/risk-on-risk-off-meter) - [Position Size Calculator](https://www.babypips.com/tools/position-size-calculator) - ["Back to Breakeven" Calculator](https://www.babypips.com/tools/gain-loss-percentage-calculator) - [Pip Value Calculator](https://www.babypips.com/tools/pip-value-calculator) - [Pivot Point Calculator](https://www.babypips.com/tools/pivot-point-calculator) Company - [About](https://www.babypips.com/about) - [Contact](https://www.babypips.com/contact) - [Advertise](https://www.babypips.com/advertise) - [Newsletter](https://www.babypips.com/newsletter) - [Testimonials](https://www.babypips.com/testimonials) - [FAQ](https://www.babypips.com/faq) - [Subscribe](https://www.babypips.com/subscribe) Babypips - [Facebook](https://facebook.com/babypips) - [Instagram](https://instagram.com/babypips) - [Twitter](https://twitter.com/babypips) Babypips helps new traders learn about the forex and crypto markets without falling asleep. We introduce people to the world of trading currencies, both fiat and crypto, through our non-drowsy educational content and tools. We're also a community of traders that support each other on our daily trading journey. Copyright © 2026 Babypips.com LLC. All rights reserved. - [Privacy Policy](https://www.babypips.com/privacy) - [Risk Disclosure](https://www.babypips.com/risk-disclosure) - [Terms of Use](https://www.babypips.com/terms-of-use) - Privacy Manager ## Looks like your ad blocker is on. × We rely on ads to keep creating quality content for you to enjoy for free. Please support our site by disabling your ad blocker. Disable Continue without supporting us #### Choose your Ad Blocker - Adblock Plus - Adblock - Adguard - Ad Remover - Brave - Ghostery - uBlock Origin - uBlock - UltraBlock - Other 1. In the extension bar, click the AdBlock Plus icon 2. Click the large blue toggle for this website 3. Click refresh 1. In the extension bar, click the AdBlock icon 2. Under "Pause on this site" click "Always" 1. In the extension bar, click on the Adguard icon 2. Click on the large green toggle for this website 1. In the extension bar, click on the Ad Remover icon 2. Click "Disable on This Website" 1. In the extension bar, click on the orange lion icon 2. Click the toggle on the top right, shifting from "Up" to "Down" 1. In the extension bar, click on the Ghostery icon 2. Click the "Anti-Tracking" shield so it says "Off" 3. Click the "Ad-Blocking" stop sign so it says "Off" 4. Refresh the page 1. In the extension bar, click on the uBlock Origin icon 2. Click on the big, blue power button 3. Refresh the page 1. In the extension bar, click on the uBlock icon 2. Click on the big, blue power button 3. Refresh the page 1. In the extension bar, click on the UltraBlock icon 2. Check the "Disable UltraBlock" checkbox 1. Please disable your Ad Blocker 2. Disable any DNS blocking tools such as AdGuardDNS or NextDNS 3. Disable any privacy or tracking protection extensions such as Firefox Enhanced Tracking Protection or DuckDuckGo Privacy. If the prompt is still appearing, please disable any tools or services you are using that block internet ads (e.g. DNS Servers, tracking protection or privacy extensions). Go Back
Readable Markdown	Congratulations on making it to the 5th grade\! Each time you make it to the next grade, you continue to add more and more tools to your trader’s [technical analysis](https://www.babypips.com/forexpedia/technical-analysis) (TA) toolbox. “What’s a trader’s toolbox?” you ask. Simple\! [![Trader Toolbox](https://bpcdn.co/images/2011/02/16172052/trader-toolbox-360x273.png)](https://bpcdn.co/images/2011/02/16172052/trader-toolbox.png) Let’s compare trading to building a house. You wouldn’t use a hammer on a screw, right? Nor would you use a buzz saw to drive in nails. There’s a proper tool for each situation. Just like in trading, certain [technical indicators](https://www.babypips.com/forexpedia/technical-indicator) are best used for particular environments or situations. So, the more tools you have, the better you can ADAPT to the ever-changing market environment. Or if you want to focus on a few specific trading environments or tools, that’s cool too. It’s good to have a specialist when installing your electricity or plumbing in a house, just like it’s cool to be a [Bollinger Bands](https://www.babypips.com/forexpedia/bollinger-bands) or [Moving Average](https://www.babypips.com/forexpedia/moving-average) specialist. There are a million different ways to grab some pips\! In this lesson, as you learn about these indicators, think of each as a new tool that you can add to that toolbox of yours. You might not necessarily use all of these tools, but it’s always nice to have plenty of options, right? You might even find one that you understand and are comfortable enough to master on its own. Now, enough about tools already\! Let’s get started\! ## Bollinger Bands Bollinger Bands, a technical indicator developed by [John Bollinger](https://en.wikipedia.org/wiki/John_Bollinger "John Bollinger"), are used to measure a market’s volatility and identify “overbought” or “oversold” conditions. ![John Bollinger](https://bpcdn.co/images/2011/02/john-bollinger.jpg) John Bollinger Basically, this little tool tells us whether the market is quiet or whether the market is LOUD\! When the market is quiet, the bands contract, and when the market is LOUD, the bands expand. Look at the chart below. The Bollinger Bands (BB) is a chart overlay indicator meaning it’s displayed over the price. ![Bollinger Bands](https://bpcdn.co/images/2016/05/grade5-bollinger-band.png) Notice how when the price is quiet, the bands are close together. When the price moves up, the bands spread apart. The upper and lower bands measure volatility or the degree of variation of prices over time. Because Bollinger Bands measures volatility, the bands adjust automatically to changing market conditions. That’s all there is to it. Yes, we could go on and bore you by going into the history of the Bollinger Bands, how it is calculated, the mathematical formulas behind it, and so on and so forth, but we really didn’t feel like typing it all out. Okay fine fine, we’ll give a brief description… ## What are Bollinger Bands? Bollinger Bands are typically plotted as three lines: 1. An upper band 2. A middle line 3. A lower band The middle line of the indicator is a simple moving average (SMA). Most charting programs default to a 20-period, which is fine for most traders, but you can experiment with different moving average lengths after you get a little experience applying Bollinger Bands. The upper and lower bands, by default, represent two standard deviations above and below the middle line (moving average). If you’re freaking out because you’re not familiar with standard deviations. Have no fear. The concept of standard deviation (SD) is just a measure of how spread out numbers are. If the upper and lower bands are 1 standard deviation, this means that about 68% of price moves that have occurred recently are CONTAINED within these bands. If the upper and lower bands are 2 standard deviations, this means that about 95% of price moves that have occurred recently are CONTAINED within these bands. You’re probably falling asleep let’s hit you with an image. [![Standard Deviation](https://bpcdn.co/images/2011/02/16171058/standard-deviation.png)](https://bpcdn.co/images/2011/02/16171058/standard-deviation.png) As you can see, the higher the value of SD you use for the bands, the more prices the bands “capture”. You can try out different standard deviations for the bands once you become more familiar with how they work. In all honesty, to get started, you don’t need to know most of this stuff. We think it’s more important that we show you some ways you can apply the Bollinger Bands to your trading. Note: If you really want to learn about the calculations of Bollinger Bands, check out John’s book, [Bollinger on Bollinger Bands,](https://www.amazon.com/Bollinger-Bands-John/dp/0071373683) or check out our lovely Forexpedia page on [Bollinger Bands](https://www.babypips.com/forexpedia/bollinger-bands). ## Bollinger Bands as a Volatility Indicator Bollinger Bands provide a visual representation of volatility. The width of the bands (the distance between the upper and lower bands) increases when volatility is high and contracts when volatility is low: - When the bands are far apart, it indicates high volatility. - When the bands are close together, it indicates low volatility. This is because the standard deviation is larger when price fluctuations are more extreme, leading to wider bands. ## The Bollinger Bounce One thing you should know about Bollinger Bands is that the price tends to return to the middle of the bands. That is the whole idea behind the “Bollinger Bounce.” By looking at the chart below, can you tell us where the price might go next? ![Price reached the top of the Bollinger band](https://bpcdn.co/images/2016/05/grade5-bollinger-resistance-start.png) If you said down, then you are correct! As you can see, the price settled back down towards the middle area of the bands. ![Price bounces back towards the middle of the Bollinger Bands](https://bpcdn.co/images/2016/05/grade5-bollinger-resistance-end.png) What you just saw was a classic Bollinger Bounce. The reason these bounces occur is that the Bollinger bands act like dynamic support and resistance levels. The longer the time frame you are in, the stronger these bands tend to be. Many traders have developed systems that thrive on these bounces and this strategy is best used when the market is ranging and there is no clear trend. You only want to trade this approach when price is trendless. So be mindful of the WIDTH of the bands. Avoid trading the Bollinger Bounce when the bands are expanding, because this usually means the price is not moving within a range but in a TREND\! Instead, look for these conditions when the bands are stable or even contracting. Now let’s look at a way to use Bollinger Bands when the market is TRENDING… ## Bollinger Squeeze The Bollinger Squeeze occurs when the bands come close together, indicating a period of low volatility. This tight constriction is called the “squeeze.” The squeeze suggests that a significant price move could be coming. If the candles start to break out above the TOP band, then the move will usually continue to go UP. If the candles start to break out below the BOTTOM band, then the price will usually continue to go DOWN. ![Bollinger Band squeeze](https://bpcdn.co/images/2016/05/grade5-bollinger-squeeze-start.png) Looking at the chart above, you can see the bands squeezing together. The price has just started to break out of the top band. Based on this information, where do you think the price will go? ![Bollinger Band Squeeze Expands](https://bpcdn.co/images/2016/05/grade5-bollinger-squeeze-end.png) If you said up, you are correct again\! This is how a typical Bollinger Squeeze works. This strategy is designed for you to catch a move as early as possible. Setups like these don’t occur every day, but you can probably spot them a few times a week if you are looking at a 15-minute chart. There are many other things you can do with Bollinger Bands, but these are the two most common strategies associated with them. Go ahead and add the indicator to your charts and watch how prices move with respect to the three bands. Once you’ve got the hang of it, try changing up some of the indicator’s parameters. It’s time to put this in your trader’s toolbox before we move on to the next indicator.
Shard	7 (laksa)
Root Hash	17919460998607966807
Unparsed URL	com,babypips!www,/learn/forex/bollinger-bands s443