🕷️ Crawler Inspector

URL Lookup

Direct Parameter Lookup

Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 22 (from laksa040)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa022.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.oanda.com/sg-en/trading/learn/indicators-oscillators/bollinger-bands/\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/bollinger-bands/\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/bollinger-bands\/","crawl_time":1776116676,"first_indexed_time":1730829120,"http_code":200,"src_unparsed":"com,oanda!www,\/sg-en\/trading\/learn\/indicators-oscillators\/bollinger-bands\/ s443","src_root_hash":"6683013565514888222","history_drop_reason":null,"meta_title":"How to use Bollinger Bands® | Learn to trade | OANDA","meta_descriptions":["How to use Bollinger Bands for better entry and exit points in margin trading"],"attrs_boilerpipe_text":"What Bollinger Bands® are and their history\nThe importance or time-frame and settings available for Bollinger Bands\nHow to form trading strategy around Bollinger Bands\nJohn Bollinger started working on the concept of bridging the gap between technical and fundamental analysis with a single visualization in an attempt to create a middle ground he referred to as ‘Rational Analysis’ in early 1980’s. He was trading options at the time and much of his analytics involved volatility. At the time fixed width trading bands were in use. Mr. Bollinger's contribution was to use volatility standard deviation to make trading bands adaptive.\nOriginally, when presenting the tool on the Financial News Network tv channel, when asked by the interviewer what they are he replied simply\n‘Let’s call them Bollinger Bands’\n. In 2011 John Bollinger registered the name in the U.S.\nBollinger Bands are a type of chart indicator named after their creator, John Bollinger, who took the idea of plotting moving averages one step further. He used the concept of\nstandard deviation\nto define\nthe upper and lower boundaries\nof a price move as\nagainst the average price\nof an asset (or forex pair) for any given time frame.\nIn appearance, Bollinger Bands resemble a diaphanous stocking enveloping the moving candles on a chart and forming a sort of snake-like channel.\nThere’s a thin line in the middle of the Bollinger Band\n. This line, by default, is equal to the\n20-simple moving average (SMA)\n. Candles above this line would be considered bullish, whereas candles below the line would be bearish.\nYou’ll find Bollinger Bands under indicators on any chart on your OANDA trading platform. Once you’ve selected the Bollinger Band, it will wrap itself around the candles. You can\nselect standard deviation values\nfor Bollinger Bands in the settings area. The higher the value of the standard deviation, the wider the band and therefore, more of the price action the band will contain.\nOnce you have added the indicator to your chart,\nyou can adjust the deviation settings\nby opening the indicator settings. A window will open showing you the default setting of 2. If you raise this value to the upper values of 2 or even 3, the\nindicator will capture more of the price movement within the Bollinger band\n. You can also change the default 20 length to, say, 50, should you prefer to work with this value instead.\nFor a value of\n1\n:\n65% of price action\nis contained with the Bollinger Band\nFor a value of\n2\n:\naround 95%\nof price action is contained\nA standard deviation setting of\n3:\ncontains almost 99%\nof price action in a Bollinger Band\nRemember,\nlower settings will generate more signals\n, but will also increase the number of\nfalse signals\n, as the candles will more often push through the upper and lower lines of the Bollinger Band.\nBecause Bollinger Bands typically contain most of the instrument’s price movement, price will usually but not always keep within the Band. In the example below you’ll notice that\nonce price touches the top of the band\n, it reaches a\nzone of overbought territory\nand starts to revert to the midline moving average. If the trend is strong\nit may bounce off the midline moving average\nand resume its upward climb\n, but generally price will cut through the middle and fall until it lands on the bottom of the band and a zone that is\npotentially oversold territory\n. From here, except in a downward trend, it is\nvery likely to climb back up\n.\nFor a trader, these tops and bottoms of price movement within a Bollinger Band can serve as\nentry and exit points\n. When it comes to using Bollinger Bands on strong trends, you may have better trading results selling the tops of Bollinger Bands on a downward trend, while refraining from trading the dips around the bottom of the bands. You may then apply the opposite approach for an upward trend.\nIn a ranging market\n, the upper and lower bands can act as reliable areas of support and resistance. It’s worth noting the boundaries to these bands can be stretched to accommodate an injection of volatility, either to the upside or downside.\nFor instance, even when candles can be seen pressing up against the top of a Bollinger Band,\nthis doesn’t automatically give you a sell signal\n. This is because, if volatility is strong enough, buyers can push the bands still higher. The same applies to a downward move. In a strong trend or trend reversal, the candles will puncture the sides of the bands,\nforcing the bands to stretch even further\n.\nTo avoid getting caught out by volatility\n, it is good practice to\nwait for some sign of confirmation\nthat price is returning to the direction you want to trade in. So, for example, if you’ve concluded the trend is up and you wanted to go long, rather than entering a trade as the most recent candle prints against the bottom outer line of the band, wait until you see bullish candles taking price up again before placing your order.\nIt is easy to forget that every\nBollinger Band reflects price movement within a different time frame\n. The screenshot below shows the NZD\/USD pair for a day and for 4 hours over the same time period.\nIn the first chart, the daily, there is some bullish action near the base of the band and plenty of room above it. You might think to go long.\nHowever, on the four-hour chart,\nprice is nearing the top of the band\nand, as the overall picture since recent days has been bearish for the dollar, a short position may in fact be a better choice.\nSo, in cases like this it might be more prudent to look for other means of identifying which is the better trade, long or short. You could, for instance, look at what the dollar is doing against other pairs. Or you could look at other indicators, such as volume, MACD and moving averages. As with most trading decisions,\nit always pays to finalize your analysis with reference to more than one indicator\n.\nTraders who are wary of relying too heavily on indicators will often make an exception when it comes to\nchecking for a squeeze in a Bollinger Band\n. When price enters a period of consolidation and low volatility, the Bollinger Band starts to tighten around the narrowing range of candles.\nThis squeeze of the band signals a high probability that price is about to break out\n, usually with high volume.\nWhen\nthe breakout occurs\n, price will usually\nmove in the direction of the breakout for some considerable time\n. Some squeezes can last days or even weeks. As you can see from the screenshot below, there was a squeeze in the Bollinger band for about six weeks before price broke out to higher levels during November of 2020.\nTo\nidentify a potential breakout\n, look at the hooks of the outer and lower Bollinger Bands. If the bands remain flat, or one band hooks but the other stays flat, the breakout isn’t there yet. But\nif you see both upper and lower bands opening up\n, you know that volatility is rising and a\nbreakout could be about to occur\n.\nThe Bollinger Bands indicator uses the concept of standard deviation to define the upper and lower boundaries of a price move as against the average price of an asset (or forex pair) for any given time frame.\nBollinger Bands give a more faithful reading of changes in price in a ranging market. In a trending market, volatility can suddenly stretch the bands wider causing trading signals to fail.\nBollinger Bands can give a different picture for price action according to the timeframe, so it’s important you check various timeframes to establish direction and best points for entry and exit before placing a trade.\nWhen the Bands squeeze tightly around the candlesticks on your chart, limiting their range, it is highly probable this period of consolidation will be followed by a strong breakout, either to the upside or the downside.\nSeeking information on how to double-check signals with various indicators? Check out the Indicators & Oscillator section available in our learning section. You may also want to explore our other educational material such as our free webinars, workshops and how-to videos. Once you’ve opened an account, live or demo, you can put your knowledge into practice.\nOther articles from [Category name]:\n[automatically generated TOC]\nDifference between leveraged and other forms of financial trading.\nexpand_less\nexpand_more\nUse fundamental analysis to your advantage.\nexpand_less\nexpand_more\nHow is technical analysis different from fundamental analysis?\nexpand_less\nexpand_more\nHow to build a robust trading strategy using indicators and oscillators.\nexpand_less\nexpand_more","attrs_markdown":"[Help](https:\/\/help.oanda.com\/sg\/en\/home.htm?_gl=1*1k4rdjx*_gcl_au*MjA4ODY3NDUwOS4xNzE2OTg2OTIy*_ga*MTQ5NTg0ODQzNC4xNzA5MDM1NzQy*_ga_Q2HXMSGECM*MTcyMzU2MDI0My41NzQuMS4xNzIzNTYzOTcyLjExLjAuMA) [Offers](https:\/\/pages.oanda.com\/202306-oap-awards-offer.html) [Legal](https:\/\/www.oanda.com\/sg-en\/legal\/)\n\n[Oanda ![OANDA Logo](https:\/\/www.oanda.com\/assets\/images\/oanda-logo-dark.6b7ab1315e0d.svg)](https:\/\/www.oanda.com\/sg-en\/)\n\nTrading\n\n[Trading Trade smarter, with competitive pricing on indices, forex, cryptocurrencies, commodities and metals CFDs.](https:\/\/www.oanda.com\/sg-en\/trading\/)\n\n[Instruments](https:\/\/www.oanda.com\/sg-en\/trading\/instruments\/)\n\n[Forex CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/forex\/)\n\n[Share CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/shares\/)\n\n[Indices CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/indices\/)\n\n[Metals CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/metals\/)\n\n[Commodities CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/commodities\/)\n\n[Cryptocurrencies CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/cryptocurrencies\/)\n\n[Bonds CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/bonds\/)\n\n[Spreads & margins](https:\/\/www.oanda.com\/sg-en\/trading\/spreads-margin\/)\n\n[Historical spreads](https:\/\/www.oanda.com\/sg-en\/trading\/historical-spreads\/)\n\n[GSLOs](https:\/\/www.oanda.com\/sg-en\/trading\/guaranteed-stop-loss-order\/)\n\n[Corporate actions](https:\/\/www.oanda.com\/sg-en\/trading\/corporate-actions\/)\n\n[Our pricing](https:\/\/www.oanda.com\/sg-en\/trading\/our-pricing\/)\n\n[Our charges](https:\/\/www.oanda.com\/sg-en\/trading\/our-charges\/)\n\n[Financing costs](https:\/\/www.oanda.com\/sg-en\/trading\/financing-costs\/)\n\n[Hours of operation](https:\/\/www.oanda.com\/sg-en\/trading\/hours-of-operation\/)\n\n[Holiday trading hours](https:\/\/www.oanda.com\/sg-en\/trading\/holiday-trading-hours\/)\n\n[![Nav banner desktop (9)](https:\/\/storage.googleapis.com\/web-content.oanda.com\/images\/Nav_banner_desktop_VRYTTZm.width-480.format-webp.webpquality-90.webp)](https:\/\/join.oanda.com\/sg-en\/get-more\/)\n\nPlatforms\n\n[Platforms Choose between TradingView, MT4 and our web and mobile platforms.](https:\/\/www.oanda.com\/sg-en\/platforms\/)\n\n[OANDA mobile](https:\/\/www.oanda.com\/sg-en\/platforms\/oanda-trade-mobile\/)\n\n[OANDA web](https:\/\/www.oanda.com\/sg-en\/platforms\/oanda-trade-web\/)\n\n[MetaTrader 4](https:\/\/www.oanda.com\/sg-en\/platforms\/metatrader-4\/)\n\n[MetaTrader 5](https:\/\/www.oanda.com\/sg-en\/platforms\/metatrader-5\/)\n\n[TradingView](https:\/\/www.oanda.com\/sg-en\/platforms\/tradingview\/)\n\n[![Nav banner desktop (9)](https:\/\/storage.googleapis.com\/web-content.oanda.com\/images\/Nav_banner_desktop_VRYTTZm.width-480.format-webp.webpquality-90.webp)](https:\/\/join.oanda.com\/sg-en\/get-more\/)\n\nTools & Resources\n\n[Tools & Resources Build a stronger trading strategy with our range of powerful tools.](https:\/\/www.oanda.com\/sg-en\/tools\/)\n\n[Advanced charts](https:\/\/www.oanda.com\/sg-en\/tools\/advanced-charts\/)\n\n[MT4 premium indicators](https:\/\/www.oanda.com\/sg-en\/platforms\/mt4-premium-indicators\/)\n\n[Technical analysis](https:\/\/www.oanda.com\/sg-en\/tools\/technical-analysis\/)\n\n[Partners](https:\/\/www.oanda.com\/sg-en\/tools\/partners\/)\n\n[Learn](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/)\n\n[Trade Tap blog](https:\/\/www.oanda.com\/sg-en\/trade-tap-blog\/)\n\n[![Nav banner desktop (9)](https:\/\/storage.googleapis.com\/web-content.oanda.com\/images\/Nav_banner_desktop_VRYTTZm.width-480.format-webp.webpquality-90.webp)](https:\/\/join.oanda.com\/sg-en\/get-more\/)\n\nAccount types\n\n[Account types Discover our account types and the benefits and exclusive content available with our premium packages.](https:\/\/www.oanda.com\/sg-en\/trading\/account-comparison\/)\n\n[Account comparison](https:\/\/www.oanda.com\/sg-en\/trading\/account-comparison\/)\n\n[Sub-account differences](https:\/\/www.oanda.com\/sg-en\/trading\/sub-account-differences\/)\n\n[Premium accounts](https:\/\/www.oanda.com\/sg-en\/trading\/premium-account\/)\n\n[Accredited investor](https:\/\/www.oanda.com\/sg-en\/trading\/accredited-investor\/)\n\n[![Nav banner desktop (9)](https:\/\/storage.googleapis.com\/web-content.oanda.com\/images\/Nav_banner_desktop_VRYTTZm.width-480.format-webp.webpquality-90.webp)](https:\/\/join.oanda.com\/sg-en\/get-more\/)\n\nAccount support\n\n[How to open an account](https:\/\/www.oanda.com\/sg-en\/trading\/how-open-account\/)\n\n[Deposits & withdrawals](https:\/\/www.oanda.com\/sg-en\/trading\/deposits-and-withdrawals\/)\n\n[Refer a friend](https:\/\/www.oanda.com\/sg-en\/trading\/refer-a-friend\/)\n\n[Contact us](<mailto: frontdesk@oanda.com>)\n\n[![Nav banner desktop (9)](https:\/\/storage.googleapis.com\/web-content.oanda.com\/images\/Nav_banner_desktop_VRYTTZm.width-480.format-webp.webpquality-90.webp)](https:\/\/join.oanda.com\/sg-en\/get-more\/)\n\n[Login](https:\/\/hub.oanda.com\/)\n\n[Sign up via Singpass](https:\/\/hub.oanda.com\/apply)\n\nTrading\n\n[Instruments](https:\/\/www.oanda.com\/sg-en\/trading\/instruments\/)   [Forex CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/forex\/)   [Share CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/shares\/)   [Indices CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/indices\/)   [Metals CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/metals\/)   [Commodities CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/commodities\/)   [Cryptocurrencies CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/cryptocurrencies\/)   [Bonds CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/bonds\/)   [Spreads & margins](https:\/\/www.oanda.com\/sg-en\/trading\/spreads-margin\/)   [Historical spreads](https:\/\/www.oanda.com\/sg-en\/trading\/historical-spreads\/)   [GSLOs](https:\/\/www.oanda.com\/sg-en\/trading\/guaranteed-stop-loss-order\/)   [Corporate actions](https:\/\/www.oanda.com\/sg-en\/trading\/corporate-actions\/)   [Our pricing](https:\/\/www.oanda.com\/sg-en\/trading\/our-pricing\/)   [Our charges](https:\/\/www.oanda.com\/sg-en\/trading\/our-charges\/)   [Financing costs](https:\/\/www.oanda.com\/sg-en\/trading\/financing-costs\/)   [Hours of operation](https:\/\/www.oanda.com\/sg-en\/trading\/hours-of-operation\/)   [Holiday trading hours](https:\/\/www.oanda.com\/sg-en\/trading\/holiday-trading-hours\/)   [Trading](https:\/\/www.oanda.com\/sg-en\/trading\/)\n\nPlatforms\n\n[OANDA mobile](https:\/\/www.oanda.com\/sg-en\/platforms\/oanda-trade-mobile\/)   [OANDA web](https:\/\/www.oanda.com\/sg-en\/platforms\/oanda-trade-web\/)   [MetaTrader 4](https:\/\/www.oanda.com\/sg-en\/platforms\/metatrader-4\/)   [MetaTrader 5](https:\/\/www.oanda.com\/sg-en\/platforms\/metatrader-5\/)   [TradingView](https:\/\/www.oanda.com\/sg-en\/platforms\/tradingview\/)   [Platforms](https:\/\/www.oanda.com\/sg-en\/platforms\/)\n\nTools & Resources\n\n[Advanced charts](https:\/\/www.oanda.com\/sg-en\/tools\/advanced-charts\/)   [MT4 premium indicators](https:\/\/www.oanda.com\/sg-en\/platforms\/mt4-premium-indicators\/)   [Technical analysis](https:\/\/www.oanda.com\/sg-en\/tools\/technical-analysis\/)   [Partners](https:\/\/www.oanda.com\/sg-en\/tools\/partners\/)   [Learn](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/)   [Trade Tap blog](https:\/\/www.oanda.com\/sg-en\/trade-tap-blog\/)   [Tools & Resources](https:\/\/www.oanda.com\/sg-en\/tools\/)\n\nAccount types\n\n[Account comparison](https:\/\/www.oanda.com\/sg-en\/trading\/account-comparison\/)   [Sub-account differences](https:\/\/www.oanda.com\/sg-en\/trading\/sub-account-differences\/)   [Premium accounts](https:\/\/www.oanda.com\/sg-en\/trading\/premium-account\/)   [Accredited investor](https:\/\/www.oanda.com\/sg-en\/trading\/accredited-investor\/)\n\nAccount support\n\n[How to open an account](https:\/\/www.oanda.com\/sg-en\/trading\/how-open-account\/)   [Deposits & withdrawals](https:\/\/www.oanda.com\/sg-en\/trading\/deposits-and-withdrawals\/)   [Refer a friend](https:\/\/www.oanda.com\/sg-en\/trading\/refer-a-friend\/)   [Contact us](<mailto: frontdesk@oanda.com>)\n\nExplore more\n\n[Help](https:\/\/help.oanda.com\/sg\/en\/home.htm?_gl=1*1k4rdjx*_gcl_au*MjA4ODY3NDUwOS4xNzE2OTg2OTIy*_ga*MTQ5NTg0ODQzNC4xNzA5MDM1NzQy*_ga_Q2HXMSGECM*MTcyMzU2MDI0My41NzQuMS4xNzIzNTYzOTcyLjExLjAuMA)   [Offers](https:\/\/pages.oanda.com\/202306-oap-awards-offer.html)   [Legal](https:\/\/www.oanda.com\/sg-en\/legal\/)\n\n[Login](https:\/\/hub.oanda.com\/)\n\n[![Nav banner mobile (9)](https:\/\/storage.googleapis.com\/web-content.oanda.com\/images\/Nav_ba_IoStxuF.2e16d0ba.fill-768x213.format-webp.webpquality-90.webp)](https:\/\/join.oanda.com\/sg-en\/get-more\/)\n\nOanda ![Open menu button](https:\/\/www.oanda.com\/assets\/images\/Hamburger.7839b5141c39.svg) ![Close menu button](https:\/\/www.oanda.com\/assets\/images\/Close.f07ea7819953.svg)\n\n[Learn](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/)   [How to build a robust trading strategy using indicators and oscillators.](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/)\n\n# Learn how to trade with Bollinger Bands® \\| OANDA\n#### Bollinger Bands, a technical indicator, can help traders identify overbought and oversold conditions and spot potential breakouts.\n\n![Transparent](https:\/\/storage.googleapis.com\/web-content.oanda.com\/images\/transparent600x600.2e16d0ba.fill-840x560.png)\n\nOn This Page\n\n[Through this article you will learn](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/bollinger-bands\/#through-this-article-you-will-learn) [The history of Bollinger Bands and what they are](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/bollinger-bands\/#the-history-of-bollinger-bands-and-what-they-are) [What is the Bollinger Bands indicator?](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/bollinger-bands\/#what-is-the-bollinger-bands-indicator) [Settings for Bollinger Bands](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/bollinger-bands\/#settings-for-bollinger-bands) [How to trade using Bollinger Bands](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/bollinger-bands\/#how-to-trade-using-bollinger-bands) [Importance of time frames in Bollinger Bands](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/bollinger-bands\/#importance-of-time-frames-in-bollinger-bands) [Bollinger Bands squeeze strategy](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/bollinger-bands\/#bollinger-bands-squeeze-strategy) [Key takeaways](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/bollinger-bands\/#key-takeaways) [Further reading](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/bollinger-bands\/#further-reading)\n\n[Learn](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/)\n\nDifference between leveraged and other forms of financial trading.\n\n*expand\\_less* *expand\\_more*\n\n[What is leverage trading?](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/introduction-to-leverage-trading\/what-is-leverage-trading\/)\n\n[Beginners guide to trading with margin](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/introduction-to-leverage-trading\/what-is-margin-in-trading\/)\n\n[What is a pip in leverage trading?](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/introduction-to-leverage-trading\/what-is-a-pip\/)\n\n[What does it mean to trade ‘long’ or ‘short’?](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/introduction-to-leverage-trading\/long-and-short-positions\/)\n\n[Beginners guide to market orders](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/introduction-to-leverage-trading\/order-types-explained\/)\n\nUse fundamental analysis to your advantage.\n\n*expand\\_less* *expand\\_more*\n\n[The basics of fundamental analysis](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/fundamental-analysis\/introduction-to-fundamental-analysis\/)\n\nHow is technical analysis different from fundamental analysis?\n\n*expand\\_less* *expand\\_more*\n\n[Technical analysis in trading](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/technical-analysis\/introduction-to-technical-analysis\/)\n\nHow to build a robust trading strategy using indicators and oscillators.\n\n*expand\\_less* *expand\\_more*\n\n[Beginners guide to moving averages](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/filtering-out-the-noise-moving-averages\/)\n\n[MACD: Finding entry and exit points](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/determining-entry-and-exit-points-with-macd\/)\n\n[Beginners guide to Fibonacci retracements](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/fibonacci-retracements\/)\n\n[Beginners guide to the RSI](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/relative-strength-index-\/)\n\n[How to trade with Bollinger Bands®](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/bollinger-bands\/)\n\n[How to use stochastic oscillator](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/stochastic-oscillator\/)\n\n## Through this article you will learn:\n- What Bollinger Bands® are and their history\n- The importance or time-frame and settings available for Bollinger Bands\n- How to form trading strategy around Bollinger Bands\n## The history of Bollinger Bands and what they are\nJohn Bollinger started working on the concept of bridging the gap between technical and fundamental analysis with a single visualization in an attempt to create a middle ground he referred to as ‘Rational Analysis’ in early 1980’s. He was trading options at the time and much of his analytics involved volatility. At the time fixed width trading bands were in use. Mr. Bollinger's contribution was to use volatility standard deviation to make trading bands adaptive.\n\nOriginally, when presenting the tool on the Financial News Network tv channel, when asked by the interviewer what they are he replied simply **‘Let’s call them Bollinger Bands’**. In 2011 John Bollinger registered the name in the U.S.\n### What is the Bollinger Bands indicator?\nBollinger Bands are a type of chart indicator named after their creator, John Bollinger, who took the idea of plotting moving averages one step further. He used the concept of **standard deviation** to define **the upper and lower boundaries** of a price move as **against the average price** of an asset (or forex pair) for any given time frame.  \n  \n In appearance, Bollinger Bands resemble a diaphanous stocking enveloping the moving candles on a chart and forming a sort of snake-like channel. **There’s a thin line in the middle of the Bollinger Band**. This line, by default, is equal to the **20-simple moving average (SMA)**. Candles above this line would be considered bullish, whereas candles below the line would be bearish.\n\n## Settings for Bollinger Bands\nYou’ll find Bollinger Bands under indicators on any chart on your OANDA trading platform. Once you’ve selected the Bollinger Band, it will wrap itself around the candles. You can **select standard deviation values** for Bollinger Bands in the settings area. The higher the value of the standard deviation, the wider the band and therefore, more of the price action the band will contain.\n\nOnce you have added the indicator to your chart, **you can adjust the deviation settings** by opening the indicator settings. A window will open showing you the default setting of 2. If you raise this value to the upper values of 2 or even 3, the **indicator will capture more of the price movement within the Bollinger band**. You can also change the default 20 length to, say, 50, should you prefer to work with this value instead.\n\n- For a value of **1**:  \n  **65% of price action** is contained with the Bollinger Band\n- For a value of **2**:  \n  **around 95%** of price action is contained\n- A standard deviation setting of **3:**  \n  **contains almost 99%** of price action in a Bollinger Band\n\nRemember, **lower settings will generate more signals**, but will also increase the number of **false signals**, as the candles will more often push through the upper and lower lines of the Bollinger Band.\n## How to trade using Bollinger Bands\nBecause Bollinger Bands typically contain most of the instrument’s price movement, price will usually but not always keep within the Band. In the example below you’ll notice that **once price touches the top of the band**, it reaches a **zone of overbought territory** and starts to revert to the midline moving average. If the trend is strong **it may bounce off the midline moving average** **and resume its upward climb**, but generally price will cut through the middle and fall until it lands on the bottom of the band and a zone that is **potentially oversold territory**. From here, except in a downward trend, it is **very likely to climb back up**.\n\nFor a trader, these tops and bottoms of price movement within a Bollinger Band can serve as **entry and exit points**. When it comes to using Bollinger Bands on strong trends, you may have better trading results selling the tops of Bollinger Bands on a downward trend, while refraining from trading the dips around the bottom of the bands. You may then apply the opposite approach for an upward trend.\n\n**In a ranging market**, the upper and lower bands can act as reliable areas of support and resistance. It’s worth noting the boundaries to these bands can be stretched to accommodate an injection of volatility, either to the upside or downside.\n\nFor instance, even when candles can be seen pressing up against the top of a Bollinger Band, **this doesn’t automatically give you a sell signal**. This is because, if volatility is strong enough, buyers can push the bands still higher. The same applies to a downward move. In a strong trend or trend reversal, the candles will puncture the sides of the bands, **forcing the bands to stretch even further**.\n\n**To avoid getting caught out by volatility**, it is good practice to **wait for some sign of confirmation** that price is returning to the direction you want to trade in. So, for example, if you’ve concluded the trend is up and you wanted to go long, rather than entering a trade as the most recent candle prints against the bottom outer line of the band, wait until you see bullish candles taking price up again before placing your order.\n## Importance of time frames in Bollinger Bands\nIt is easy to forget that every **Bollinger Band reflects price movement within a different time frame**. The screenshot below shows the NZD\/USD pair for a day and for 4 hours over the same time period.\n\nIn the first chart, the daily, there is some bullish action near the base of the band and plenty of room above it. You might think to go long.\n\nHowever, on the four-hour chart, **price is nearing the top of the band** and, as the overall picture since recent days has been bearish for the dollar, a short position may in fact be a better choice.\n\nSo, in cases like this it might be more prudent to look for other means of identifying which is the better trade, long or short. You could, for instance, look at what the dollar is doing against other pairs. Or you could look at other indicators, such as volume, MACD and moving averages. As with most trading decisions, **it always pays to finalize your analysis with reference to more than one indicator**.\n\n## Bollinger Bands squeeze strategy\nTraders who are wary of relying too heavily on indicators will often make an exception when it comes to **checking for a squeeze in a Bollinger Band**. When price enters a period of consolidation and low volatility, the Bollinger Band starts to tighten around the narrowing range of candles. **This squeeze of the band signals a high probability that price is about to break out**, usually with high volume.\n\nWhen **the breakout occurs**, price will usually **move in the direction of the breakout for some considerable time**. Some squeezes can last days or even weeks. As you can see from the screenshot below, there was a squeeze in the Bollinger band for about six weeks before price broke out to higher levels during November of 2020.\n\nTo **identify a potential breakout**, look at the hooks of the outer and lower Bollinger Bands. If the bands remain flat, or one band hooks but the other stays flat, the breakout isn’t there yet. But **if you see both upper and lower bands opening up**, you know that volatility is rising and a **breakout could be about to occur**.\n\n## Key takeaways\n- The Bollinger Bands indicator uses the concept of standard deviation to define the upper and lower boundaries of a price move as against the average price of an asset (or forex pair) for any given time frame.\n- Bollinger Bands give a more faithful reading of changes in price in a ranging market. In a trending market, volatility can suddenly stretch the bands wider causing trading signals to fail.\n- Bollinger Bands can give a different picture for price action according to the timeframe, so it’s important you check various timeframes to establish direction and best points for entry and exit before placing a trade.\n- When the Bands squeeze tightly around the candlesticks on your chart, limiting their range, it is highly probable this period of consolidation will be followed by a strong breakout, either to the upside or the downside.\n\nSeeking information on how to double-check signals with various indicators? Check out the Indicators & Oscillator section available in our learning section. You may also want to explore our other educational material such as our free webinars, workshops and how-to videos. Once you’ve opened an account, live or demo, you can put your knowledge into practice.\n\n## Further reading\n**Other articles from \\[Category name\\]:**\n\n- \\[automatically generated TOC\\]\n\n[Learn](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/)\n\nDifference between leveraged and other forms of financial trading.\n\n*expand\\_less* *expand\\_more*\n\n[What is leverage trading?](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/introduction-to-leverage-trading\/what-is-leverage-trading\/)\n\n[Beginners guide to trading with margin](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/introduction-to-leverage-trading\/what-is-margin-in-trading\/)\n\n[What is a pip in leverage trading?](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/introduction-to-leverage-trading\/what-is-a-pip\/)\n\n[What does it mean to trade ‘long’ or ‘short’?](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/introduction-to-leverage-trading\/long-and-short-positions\/)\n\n[Beginners guide to market orders](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/introduction-to-leverage-trading\/order-types-explained\/)\n\nUse fundamental analysis to your advantage.\n\n*expand\\_less* *expand\\_more*\n\n[The basics of fundamental analysis](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/fundamental-analysis\/introduction-to-fundamental-analysis\/)\n\nHow is technical analysis different from fundamental analysis?\n\n*expand\\_less* *expand\\_more*\n\n[Technical analysis in trading](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/technical-analysis\/introduction-to-technical-analysis\/)\n\nHow to build a robust trading strategy using indicators and oscillators.\n\n*expand\\_less* *expand\\_more*\n\n[Beginners guide to moving averages](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/filtering-out-the-noise-moving-averages\/)\n\n[MACD: Finding entry and exit points](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/determining-entry-and-exit-points-with-macd\/)\n\n[Beginners guide to Fibonacci retracements](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/fibonacci-retracements\/)\n\n[Beginners guide to the RSI](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/relative-strength-index-\/)\n\n[How to trade with Bollinger Bands®](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/bollinger-bands\/)\n\n[How to use stochastic oscillator](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/stochastic-oscillator\/)\n\nUp Next\n\n[![movingAverages-hero](https:\/\/storage.googleapis.com\/web-content.oanda.com\/images\/movingAverages-hero.2e16d0ba.fill-370x248.png)](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/filtering-out-the-noise-moving-averages\/)\n\n[Beginners guide to moving averages](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/filtering-out-the-noise-moving-averages\/)\n\nLearn to identify price reversals in markets using moving averages.\n\n[Learn more](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/filtering-out-the-noise-moving-averages\/)\n\n[![movingAverages-MACDtheory HERO](https:\/\/storage.googleapis.com\/web-content.oanda.com\/images\/movingAverages-MACDtheory.2e16d0ba.fill-370x248.png)](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/determining-entry-and-exit-points-with-macd\/)\n\n[MACD: Finding entry and exit points](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/determining-entry-and-exit-points-with-macd\/)\n\nUse the MACD indicator (oscillator) to identify potential entry and exit points in the financial markets.\n\n[Learn more](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/determining-entry-and-exit-points-with-macd\/)\n\n[![Transparent](https:\/\/storage.googleapis.com\/web-content.oanda.com\/images\/transparent600x600.2e16d0ba.fill-370x248.png)](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/fibonacci-retracements\/)\n\n[Beginners guide to Fibonacci retracements](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/fibonacci-retracements\/)\n\nLearn to identify price reversals in markets using Fibonacci retracements.\n\n[Learn more](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/fibonacci-retracements\/)\n\n[*arrow\\_upward*](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/indicators-oscillators\/bollinger-bands\/#top)\n\n## Footer\n![OANDA Logo](https:\/\/www.oanda.com\/assets\/images\/oanda-logo.370e04d3507d.svg)\n\n[Singapore](https:\/\/www.oanda.com\/region-selector\/)\n\n[![Twitter](https:\/\/www.oanda.com\/assets\/images\/social-icons\/light\/twitter.8bf8c8ae30bb.svg)](https:\/\/twitter.com\/OANDA_APAC)   [![Youtube](https:\/\/www.oanda.com\/assets\/images\/social-icons\/light\/youtube.ee50dbcfc260.svg)](https:\/\/www.youtube.com\/@oanda_apac)   [![Facebook](https:\/\/www.oanda.com\/assets\/images\/social-icons\/light\/facebook.37ba6b528947.svg)](https:\/\/www.facebook.com\/profile.php?id=61559428714369)   [![Linked In](https:\/\/www.oanda.com\/assets\/images\/social-icons\/light\/linkedin.38a080ce4248.svg)](https:\/\/www.linkedin.com\/company\/oanda)\n\n[![Apple Store Icon](https:\/\/storage.googleapis.com\/web-content.oanda.com\/images\/Apple_Store.height-50.png)](https:\/\/app.adjust.com\/1b1p3uq8?redirect_android=https%3A%2F%2Fapps.apple.com%2Fsg%2Fapp%2Foanda-forex-and-cfd-trading%2Fid370922777)\n\n[![Google Play Icon](https:\/\/storage.googleapis.com\/web-content.oanda.com\/images\/Google_Play.height-50.png)](https:\/\/app.adjust.com\/1b1p3uq8?redirect_macos=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%2Fdetails%3Fid%3Dcom.oanda.fxtrade%26hl%3Den&redirect_windows=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%252)\n\n![OANDA Logo](https:\/\/www.oanda.com\/assets\/images\/oanda-logo.370e04d3507d.svg)\n\n[![Twitter](https:\/\/www.oanda.com\/assets\/images\/social-icons\/light\/twitter.8bf8c8ae30bb.svg)](https:\/\/twitter.com\/OANDA_APAC)   [![Youtube](https:\/\/www.oanda.com\/assets\/images\/social-icons\/light\/youtube.ee50dbcfc260.svg)](https:\/\/www.youtube.com\/@oanda_apac)   [![Facebook](https:\/\/www.oanda.com\/assets\/images\/social-icons\/light\/facebook.37ba6b528947.svg)](https:\/\/www.facebook.com\/profile.php?id=61559428714369)   [![Linked In](https:\/\/www.oanda.com\/assets\/images\/social-icons\/light\/linkedin.38a080ce4248.svg)](https:\/\/www.linkedin.com\/company\/oanda)\n\n[Singapore](https:\/\/www.oanda.com\/region-selector\/)\n\n[![Apple Store Icon](https:\/\/storage.googleapis.com\/web-content.oanda.com\/images\/Apple_Store.height-50.png)](https:\/\/app.adjust.com\/1b1p3uq8?redirect_android=https%3A%2F%2Fapps.apple.com%2Fsg%2Fapp%2Foanda-forex-and-cfd-trading%2Fid370922777)\n\n[![Google Play Icon](https:\/\/storage.googleapis.com\/web-content.oanda.com\/images\/Google_Play.height-50.png)](https:\/\/app.adjust.com\/1b1p3uq8?redirect_macos=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%2Fdetails%3Fid%3Dcom.oanda.fxtrade%26hl%3Den&redirect_windows=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%252)\n\n![OANDA Logo](https:\/\/www.oanda.com\/assets\/images\/oanda-logo.370e04d3507d.svg)  [Singapore](https:\/\/www.oanda.com\/region-selector\/)\n\n[![Twitter](https:\/\/www.oanda.com\/assets\/images\/social-icons\/light\/twitter.8bf8c8ae30bb.svg)](https:\/\/twitter.com\/OANDA_APAC)   [![Youtube](https:\/\/www.oanda.com\/assets\/images\/social-icons\/light\/youtube.ee50dbcfc260.svg)](https:\/\/www.youtube.com\/@oanda_apac)   [![Facebook](https:\/\/www.oanda.com\/assets\/images\/social-icons\/light\/facebook.37ba6b528947.svg)](https:\/\/www.facebook.com\/profile.php?id=61559428714369)   [![Linked In](https:\/\/www.oanda.com\/assets\/images\/social-icons\/light\/linkedin.38a080ce4248.svg)](https:\/\/www.linkedin.com\/company\/oanda)\n\n[![Apple Store Icon](https:\/\/storage.googleapis.com\/web-content.oanda.com\/images\/Apple_Store.height-50.png)](https:\/\/app.adjust.com\/1b1p3uq8?redirect_android=https%3A%2F%2Fapps.apple.com%2Fsg%2Fapp%2Foanda-forex-and-cfd-trading%2Fid370922777)\n\n[![Google Play Icon](https:\/\/storage.googleapis.com\/web-content.oanda.com\/images\/Google_Play.height-50.png)](https:\/\/app.adjust.com\/1b1p3uq8?redirect_macos=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%2Fdetails%3Fid%3Dcom.oanda.fxtrade%26hl%3Den&redirect_windows=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%252)\n\nTrading\n\n*expand\\_more*\n\n- [Instruments](https:\/\/www.oanda.com\/sg-en\/trading\/instruments\/)\n- [Tools](https:\/\/www.oanda.com\/sg-en\/tools\/)\n- [Accounts](https:\/\/www.oanda.com\/sg-en\/trading\/account-comparison\/)\n- [Hours of operation](https:\/\/www.oanda.com\/sg-en\/trading\/hours-of-operation\/)\n- [Holiday trading hours](https:\/\/www.oanda.com\/sg-en\/trading\/holiday-trading-hours\/)\n\nProducts\n\n*expand\\_more*\n\n- [Forex CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/forex\/)\n- [Share CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/shares\/)\n- [Indices CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/indices\/)\n- [Commodities CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/commodities\/)\n- [Crypto CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/cryptocurrencies\/)\n- [Bonds CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/bonds\/)\n\nPlatforms\n\n*expand\\_more*\n\n- [OANDA Mobile](https:\/\/www.oanda.com\/sg-en\/platforms\/oanda-trade-mobile\/)\n- [OANDA Web](https:\/\/www.oanda.com\/sg-en\/platforms\/oanda-trade-web\/)\n- [TradingView](https:\/\/www.oanda.com\/sg-en\/platforms\/tradingview\/)\n- [MetaTrader 4](https:\/\/www.oanda.com\/sg-en\/platforms\/metatrader-4\/)\n- [MetaTrader 5](https:\/\/www.oanda.com\/sg-en\/platforms\/metatrader-5\/)\n\nResources\n\n*expand\\_more*\n\n- [Help](https:\/\/help.oanda.com\/sg\/en\/home.htm)\n- [Learn](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/)\n- [Webinars & events](https:\/\/www.oanda.com\/sg-en\/trading\/webinars\/)\n- [Trade Tap blog](https:\/\/www.oanda.com\/sg-en\/trade-tap-blog\/)\n\nAbout\n\n*expand\\_more*\n\n- [OANDA Group](https:\/\/www.oanda.com\/group\/)\n- [Awards](https:\/\/www.oanda.com\/sg-en\/awards\/)\n- [Become a partner](https:\/\/partners.oanda.com\/en\/)\n- [Careers](https:\/\/www.oanda.com\/group\/culture\/job-openings\/)\n- [Legal documents](https:\/\/www.oanda.com\/sg-en\/legal\/)\n- [Security practices](https:\/\/www.oanda.com\/sg-en\/security-practices\/)\n\n- Cookies Settings\n\nGet started with the OANDA app\n\n*expand\\_more*\n\n- [Download on the App Store](https:\/\/app.adjust.com\/1b1p3uq8?redirect_android=https%3A%2F%2Fapps.apple.com%2Fsg%2Fapp%2Foanda-forex-and-cfd-trading%2Fid370922777)\n- [Get it on Google Play](https:\/\/app.adjust.com\/1b1p3uq8?redirect_macos=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%2Fdetails%3Fid%3Dcom.oanda.fxtrade%26hl%3Den&redirect_windows=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%2Fdetails%3Fid%3Dcom.oanda.fxtrade%26hl%3Den)\n- [Trade on TradingView](https:\/\/www.tradingview.com\/broker\/OANDA\/)\n\n### Trading\n- [Instruments](https:\/\/www.oanda.com\/sg-en\/trading\/instruments\/)\n- [Tools](https:\/\/www.oanda.com\/sg-en\/tools\/)\n- [Accounts](https:\/\/www.oanda.com\/sg-en\/trading\/account-comparison\/)\n- [Hours of operation](https:\/\/www.oanda.com\/sg-en\/trading\/hours-of-operation\/)\n- [Holiday trading hours](https:\/\/www.oanda.com\/sg-en\/trading\/holiday-trading-hours\/)\n\n### Products\n- [Forex CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/forex\/)\n- [Share CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/shares\/)\n- [Indices CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/indices\/)\n- [Commodities CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/commodities\/)\n- [Crypto CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/cryptocurrencies\/)\n- [Bonds CFDs](https:\/\/www.oanda.com\/sg-en\/trading\/bonds\/)\n\n### Platforms\n- [OANDA Mobile](https:\/\/www.oanda.com\/sg-en\/platforms\/oanda-trade-mobile\/)\n- [OANDA Web](https:\/\/www.oanda.com\/sg-en\/platforms\/oanda-trade-web\/)\n- [TradingView](https:\/\/www.oanda.com\/sg-en\/platforms\/tradingview\/)\n- [MetaTrader 4](https:\/\/www.oanda.com\/sg-en\/platforms\/metatrader-4\/)\n- [MetaTrader 5](https:\/\/www.oanda.com\/sg-en\/platforms\/metatrader-5\/)\n\n### Resources\n- [Help](https:\/\/help.oanda.com\/sg\/en\/home.htm)\n- [Learn](https:\/\/www.oanda.com\/sg-en\/trading\/learn\/)\n- [Webinars & events](https:\/\/www.oanda.com\/sg-en\/trading\/webinars\/)\n- [Trade Tap blog](https:\/\/www.oanda.com\/sg-en\/trade-tap-blog\/)\n\n### About\n- [OANDA Group](https:\/\/www.oanda.com\/group\/)\n- [Awards](https:\/\/www.oanda.com\/sg-en\/awards\/)\n- [Become a partner](https:\/\/partners.oanda.com\/en\/)\n- [Careers](https:\/\/www.oanda.com\/group\/culture\/job-openings\/)\n- [Legal documents](https:\/\/www.oanda.com\/sg-en\/legal\/)\n- [Security practices](https:\/\/www.oanda.com\/sg-en\/security-practices\/)\n\n- Cookies Settings\n\n### Get started with the OANDA app\n- [Download on the App Store](https:\/\/app.adjust.com\/1b1p3uq8?redirect_android=https%3A%2F%2Fapps.apple.com%2Fsg%2Fapp%2Foanda-forex-and-cfd-trading%2Fid370922777)\n- [Get it on Google Play](https:\/\/app.adjust.com\/1b1p3uq8?redirect_macos=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%2Fdetails%3Fid%3Dcom.oanda.fxtrade%26hl%3Den&redirect_windows=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%2Fdetails%3Fid%3Dcom.oanda.fxtrade%26hl%3Den)\n- [Trade on TradingView](https:\/\/www.tradingview.com\/broker\/OANDA\/)\n\n© 1996 - 2026 OANDA Corporation. All rights reserved. \"OANDA\", \"fxTrade\" and OANDA's \"fx\" family of trademarks are owned by OANDA Corporation. All other trademarks appearing on this website are the property of their respective owners.\n\nContracts for Difference (CFDs) are leveraged products and carry a high level of risk. It may not be suitable for everyone. We advise you to carefully consider whether trading is appropriate for you in light of your personal circumstances. You may lose more than you deposit. Information on this website is general in nature. It should not be construed as investment or financial advice. We recommend that you seek independent financial advice and ensure you fully understand the risks involved before trading. Trading through an online platform carries additional risks. Refer to our legal section [here](https:\/\/www.oanda.com\/sg-en\/legal\/).\n\nOANDA Asia Pacific Pte Ltd (Co. Reg. No 200704926K) holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore.\n\n**OANDA Asia Pacific Pte Ltd** has its office at 1 Raffles Place \\#26-02, One Raffles Place Tower 1 Singapore 048616.\n\nIf you’d like to visit our office, please make an appointment by emailing us at [frontdesk@oanda.com](mailto:frontdesk@oanda.com).\n\nThis advertisement has not been reviewed by the Monetary Authority of Singapore. Leverage trading is high risk. Losses can exceed deposits.","attrs_readable_markdown":"- What Bollinger Bands® are and their history\n- The importance or time-frame and settings available for Bollinger Bands\n- How to form trading strategy around Bollinger Bands\n\nJohn Bollinger started working on the concept of bridging the gap between technical and fundamental analysis with a single visualization in an attempt to create a middle ground he referred to as ‘Rational Analysis’ in early 1980’s. He was trading options at the time and much of his analytics involved volatility. At the time fixed width trading bands were in use. Mr. Bollinger's contribution was to use volatility standard deviation to make trading bands adaptive.\n\nOriginally, when presenting the tool on the Financial News Network tv channel, when asked by the interviewer what they are he replied simply **‘Let’s call them Bollinger Bands’**. In 2011 John Bollinger registered the name in the U.S.\n\nBollinger Bands are a type of chart indicator named after their creator, John Bollinger, who took the idea of plotting moving averages one step further. He used the concept of **standard deviation** to define **the upper and lower boundaries** of a price move as **against the average price** of an asset (or forex pair) for any given time frame.\n\nIn appearance, Bollinger Bands resemble a diaphanous stocking enveloping the moving candles on a chart and forming a sort of snake-like channel. **There’s a thin line in the middle of the Bollinger Band**. This line, by default, is equal to the **20-simple moving average (SMA)**. Candles above this line would be considered bullish, whereas candles below the line would be bearish.\n\nYou’ll find Bollinger Bands under indicators on any chart on your OANDA trading platform. Once you’ve selected the Bollinger Band, it will wrap itself around the candles. You can **select standard deviation values** for Bollinger Bands in the settings area. The higher the value of the standard deviation, the wider the band and therefore, more of the price action the band will contain.\n\nOnce you have added the indicator to your chart, **you can adjust the deviation settings** by opening the indicator settings. A window will open showing you the default setting of 2. If you raise this value to the upper values of 2 or even 3, the **indicator will capture more of the price movement within the Bollinger band**. You can also change the default 20 length to, say, 50, should you prefer to work with this value instead.\n\n- For a value of **1**:  \n  **65% of price action** is contained with the Bollinger Band\n- For a value of **2**:  \n  **around 95%** of price action is contained\n- A standard deviation setting of **3:**  \n  **contains almost 99%** of price action in a Bollinger Band\n\nRemember, **lower settings will generate more signals**, but will also increase the number of **false signals**, as the candles will more often push through the upper and lower lines of the Bollinger Band.\n\nBecause Bollinger Bands typically contain most of the instrument’s price movement, price will usually but not always keep within the Band. In the example below you’ll notice that **once price touches the top of the band**, it reaches a **zone of overbought territory** and starts to revert to the midline moving average. If the trend is strong **it may bounce off the midline moving average** **and resume its upward climb**, but generally price will cut through the middle and fall until it lands on the bottom of the band and a zone that is **potentially oversold territory**. From here, except in a downward trend, it is **very likely to climb back up**.\n\nFor a trader, these tops and bottoms of price movement within a Bollinger Band can serve as **entry and exit points**. When it comes to using Bollinger Bands on strong trends, you may have better trading results selling the tops of Bollinger Bands on a downward trend, while refraining from trading the dips around the bottom of the bands. You may then apply the opposite approach for an upward trend.\n\n**In a ranging market**, the upper and lower bands can act as reliable areas of support and resistance. It’s worth noting the boundaries to these bands can be stretched to accommodate an injection of volatility, either to the upside or downside.\n\nFor instance, even when candles can be seen pressing up against the top of a Bollinger Band, **this doesn’t automatically give you a sell signal**. This is because, if volatility is strong enough, buyers can push the bands still higher. The same applies to a downward move. In a strong trend or trend reversal, the candles will puncture the sides of the bands, **forcing the bands to stretch even further**.\n\n**To avoid getting caught out by volatility**, it is good practice to **wait for some sign of confirmation** that price is returning to the direction you want to trade in. So, for example, if you’ve concluded the trend is up and you wanted to go long, rather than entering a trade as the most recent candle prints against the bottom outer line of the band, wait until you see bullish candles taking price up again before placing your order.\n\nIt is easy to forget that every **Bollinger Band reflects price movement within a different time frame**. The screenshot below shows the NZD\/USD pair for a day and for 4 hours over the same time period.\n\nIn the first chart, the daily, there is some bullish action near the base of the band and plenty of room above it. You might think to go long.\n\nHowever, on the four-hour chart, **price is nearing the top of the band** and, as the overall picture since recent days has been bearish for the dollar, a short position may in fact be a better choice.\n\nSo, in cases like this it might be more prudent to look for other means of identifying which is the better trade, long or short. You could, for instance, look at what the dollar is doing against other pairs. Or you could look at other indicators, such as volume, MACD and moving averages. As with most trading decisions, **it always pays to finalize your analysis with reference to more than one indicator**.\n\nTraders who are wary of relying too heavily on indicators will often make an exception when it comes to **checking for a squeeze in a Bollinger Band**. When price enters a period of consolidation and low volatility, the Bollinger Band starts to tighten around the narrowing range of candles. **This squeeze of the band signals a high probability that price is about to break out**, usually with high volume.\n\nWhen **the breakout occurs**, price will usually **move in the direction of the breakout for some considerable time**. Some squeezes can last days or even weeks. As you can see from the screenshot below, there was a squeeze in the Bollinger band for about six weeks before price broke out to higher levels during November of 2020.\n\nTo **identify a potential breakout**, look at the hooks of the outer and lower Bollinger Bands. If the bands remain flat, or one band hooks but the other stays flat, the breakout isn’t there yet. But **if you see both upper and lower bands opening up**, you know that volatility is rising and a **breakout could be about to occur**.\n\n- The Bollinger Bands indicator uses the concept of standard deviation to define the upper and lower boundaries of a price move as against the average price of an asset (or forex pair) for any given time frame.\n- Bollinger Bands give a more faithful reading of changes in price in a ranging market. In a trending market, volatility can suddenly stretch the bands wider causing trading signals to fail.\n- Bollinger Bands can give a different picture for price action according to the timeframe, so it’s important you check various timeframes to establish direction and best points for entry and exit before placing a trade.\n- When the Bands squeeze tightly around the candlesticks on your chart, limiting their range, it is highly probable this period of consolidation will be followed by a strong breakout, either to the upside or the downside.\n\nSeeking information on how to double-check signals with various indicators? Check out the Indicators & Oscillator section available in our learning section. You may also want to explore our other educational material such as our free webinars, workshops and how-to videos. Once you’ve opened an account, live or demo, you can put your knowledge into practice.\n\n**Other articles from \\[Category name\\]:**\n\n- \\[automatically generated TOC\\]\n\nDifference between leveraged and other forms of financial trading.\n\n*expand\\_less* *expand\\_more*\n\nUse fundamental analysis to your advantage.\n\n*expand\\_less* *expand\\_more*\n\nHow is technical analysis different from fundamental analysis?\n\n*expand\\_less* *expand\\_more*\n\nHow to build a robust trading strategy using indicators and oscillators.\n\n*expand\\_less* *expand\\_more*","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 hours 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 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.oanda.com/sg-en/trading/learn/indicators-oscillators/bollinger-bands/
Last Crawled	2026-04-13 21:44:36 (23 hours ago)
First Indexed	2024-11-05 17:52:00 (1 year ago)
HTTP Status Code	200
Meta Title	How to use Bollinger Bands® \| Learn to trade \| OANDA
Meta Description	How to use Bollinger Bands for better entry and exit points in margin trading
Meta Canonical	null
Boilerpipe Text	What Bollinger Bands® are and their history The importance or time-frame and settings available for Bollinger Bands How to form trading strategy around Bollinger Bands John Bollinger started working on the concept of bridging the gap between technical and fundamental analysis with a single visualization in an attempt to create a middle ground he referred to as ‘Rational Analysis’ in early 1980’s. He was trading options at the time and much of his analytics involved volatility. At the time fixed width trading bands were in use. Mr. Bollinger's contribution was to use volatility standard deviation to make trading bands adaptive. Originally, when presenting the tool on the Financial News Network tv channel, when asked by the interviewer what they are he replied simply ‘Let’s call them Bollinger Bands’ . In 2011 John Bollinger registered the name in the U.S. Bollinger Bands are a type of chart indicator named after their creator, John Bollinger, who took the idea of plotting moving averages one step further. He used the concept of standard deviation to define the upper and lower boundaries of a price move as against the average price of an asset (or forex pair) for any given time frame. In appearance, Bollinger Bands resemble a diaphanous stocking enveloping the moving candles on a chart and forming a sort of snake-like channel. There’s a thin line in the middle of the Bollinger Band . This line, by default, is equal to the 20-simple moving average (SMA) . Candles above this line would be considered bullish, whereas candles below the line would be bearish. You’ll find Bollinger Bands under indicators on any chart on your OANDA trading platform. Once you’ve selected the Bollinger Band, it will wrap itself around the candles. You can select standard deviation values for Bollinger Bands in the settings area. The higher the value of the standard deviation, the wider the band and therefore, more of the price action the band will contain. Once you have added the indicator to your chart, you can adjust the deviation settings by opening the indicator settings. A window will open showing you the default setting of 2. If you raise this value to the upper values of 2 or even 3, the indicator will capture more of the price movement within the Bollinger band . You can also change the default 20 length to, say, 50, should you prefer to work with this value instead. For a value of 1 : 65% of price action is contained with the Bollinger Band For a value of 2 : around 95% of price action is contained A standard deviation setting of 3: contains almost 99% of price action in a Bollinger Band Remember, lower settings will generate more signals , but will also increase the number of false signals , as the candles will more often push through the upper and lower lines of the Bollinger Band. Because Bollinger Bands typically contain most of the instrument’s price movement, price will usually but not always keep within the Band. In the example below you’ll notice that once price touches the top of the band , it reaches a zone of overbought territory and starts to revert to the midline moving average. If the trend is strong it may bounce off the midline moving average and resume its upward climb , but generally price will cut through the middle and fall until it lands on the bottom of the band and a zone that is potentially oversold territory . From here, except in a downward trend, it is very likely to climb back up . For a trader, these tops and bottoms of price movement within a Bollinger Band can serve as entry and exit points . When it comes to using Bollinger Bands on strong trends, you may have better trading results selling the tops of Bollinger Bands on a downward trend, while refraining from trading the dips around the bottom of the bands. You may then apply the opposite approach for an upward trend. In a ranging market , the upper and lower bands can act as reliable areas of support and resistance. It’s worth noting the boundaries to these bands can be stretched to accommodate an injection of volatility, either to the upside or downside. For instance, even when candles can be seen pressing up against the top of a Bollinger Band, this doesn’t automatically give you a sell signal . This is because, if volatility is strong enough, buyers can push the bands still higher. The same applies to a downward move. In a strong trend or trend reversal, the candles will puncture the sides of the bands, forcing the bands to stretch even further . To avoid getting caught out by volatility , it is good practice to wait for some sign of confirmation that price is returning to the direction you want to trade in. So, for example, if you’ve concluded the trend is up and you wanted to go long, rather than entering a trade as the most recent candle prints against the bottom outer line of the band, wait until you see bullish candles taking price up again before placing your order. It is easy to forget that every Bollinger Band reflects price movement within a different time frame . The screenshot below shows the NZD/USD pair for a day and for 4 hours over the same time period. In the first chart, the daily, there is some bullish action near the base of the band and plenty of room above it. You might think to go long. However, on the four-hour chart, price is nearing the top of the band and, as the overall picture since recent days has been bearish for the dollar, a short position may in fact be a better choice. So, in cases like this it might be more prudent to look for other means of identifying which is the better trade, long or short. You could, for instance, look at what the dollar is doing against other pairs. Or you could look at other indicators, such as volume, MACD and moving averages. As with most trading decisions, it always pays to finalize your analysis with reference to more than one indicator . Traders who are wary of relying too heavily on indicators will often make an exception when it comes to checking for a squeeze in a Bollinger Band . When price enters a period of consolidation and low volatility, the Bollinger Band starts to tighten around the narrowing range of candles. This squeeze of the band signals a high probability that price is about to break out , usually with high volume. When the breakout occurs , price will usually move in the direction of the breakout for some considerable time . Some squeezes can last days or even weeks. As you can see from the screenshot below, there was a squeeze in the Bollinger band for about six weeks before price broke out to higher levels during November of 2020. To identify a potential breakout , look at the hooks of the outer and lower Bollinger Bands. If the bands remain flat, or one band hooks but the other stays flat, the breakout isn’t there yet. But if you see both upper and lower bands opening up , you know that volatility is rising and a breakout could be about to occur . The Bollinger Bands indicator uses the concept of standard deviation to define the upper and lower boundaries of a price move as against the average price of an asset (or forex pair) for any given time frame. Bollinger Bands give a more faithful reading of changes in price in a ranging market. In a trending market, volatility can suddenly stretch the bands wider causing trading signals to fail. Bollinger Bands can give a different picture for price action according to the timeframe, so it’s important you check various timeframes to establish direction and best points for entry and exit before placing a trade. When the Bands squeeze tightly around the candlesticks on your chart, limiting their range, it is highly probable this period of consolidation will be followed by a strong breakout, either to the upside or the downside. Seeking information on how to double-check signals with various indicators? Check out the Indicators & Oscillator section available in our learning section. You may also want to explore our other educational material such as our free webinars, workshops and how-to videos. Once you’ve opened an account, live or demo, you can put your knowledge into practice. Other articles from [Category name]: [automatically generated TOC] Difference between leveraged and other forms of financial trading. expand_less expand_more Use fundamental analysis to your advantage. expand_less expand_more How is technical analysis different from fundamental analysis? expand_less expand_more How to build a robust trading strategy using indicators and oscillators. expand_less expand_more
Markdown	[Help](https://help.oanda.com/sg/en/home.htm?_gl=11k4rdjx_gcl_auMjA4ODY3NDUwOS4xNzE2OTg2OTIy_gaMTQ5NTg0ODQzNC4xNzA5MDM1NzQy_ga_Q2HXMSGECMMTcyMzU2MDI0My41NzQuMS4xNzIzNTYzOTcyLjExLjAuMA) [Offers](https://pages.oanda.com/202306-oap-awards-offer.html) [Legal](https://www.oanda.com/sg-en/legal/) [Oanda ![OANDA Logo](https://www.oanda.com/assets/images/oanda-logo-dark.6b7ab1315e0d.svg)](https://www.oanda.com/sg-en/) Trading [Trading Trade smarter, with competitive pricing on indices, forex, cryptocurrencies, commodities and metals CFDs.](https://www.oanda.com/sg-en/trading/) [Instruments](https://www.oanda.com/sg-en/trading/instruments/) [Forex CFDs](https://www.oanda.com/sg-en/trading/forex/) [Share CFDs](https://www.oanda.com/sg-en/trading/shares/) [Indices CFDs](https://www.oanda.com/sg-en/trading/indices/) [Metals CFDs](https://www.oanda.com/sg-en/trading/metals/) [Commodities CFDs](https://www.oanda.com/sg-en/trading/commodities/) [Cryptocurrencies CFDs](https://www.oanda.com/sg-en/trading/cryptocurrencies/) [Bonds CFDs](https://www.oanda.com/sg-en/trading/bonds/) [Spreads & margins](https://www.oanda.com/sg-en/trading/spreads-margin/) [Historical spreads](https://www.oanda.com/sg-en/trading/historical-spreads/) [GSLOs](https://www.oanda.com/sg-en/trading/guaranteed-stop-loss-order/) [Corporate actions](https://www.oanda.com/sg-en/trading/corporate-actions/) [Our pricing](https://www.oanda.com/sg-en/trading/our-pricing/) [Our charges](https://www.oanda.com/sg-en/trading/our-charges/) [Financing costs](https://www.oanda.com/sg-en/trading/financing-costs/) [Hours of operation](https://www.oanda.com/sg-en/trading/hours-of-operation/) [Holiday trading hours](https://www.oanda.com/sg-en/trading/holiday-trading-hours/) [![Nav banner desktop (9)](https://storage.googleapis.com/web-content.oanda.com/images/Nav_banner_desktop_VRYTTZm.width-480.format-webp.webpquality-90.webp)](https://join.oanda.com/sg-en/get-more/) Platforms [Platforms Choose between TradingView, MT4 and our web and mobile platforms.](https://www.oanda.com/sg-en/platforms/) [OANDA mobile](https://www.oanda.com/sg-en/platforms/oanda-trade-mobile/) [OANDA web](https://www.oanda.com/sg-en/platforms/oanda-trade-web/) [MetaTrader 4](https://www.oanda.com/sg-en/platforms/metatrader-4/) [MetaTrader 5](https://www.oanda.com/sg-en/platforms/metatrader-5/) [TradingView](https://www.oanda.com/sg-en/platforms/tradingview/) [![Nav banner desktop (9)](https://storage.googleapis.com/web-content.oanda.com/images/Nav_banner_desktop_VRYTTZm.width-480.format-webp.webpquality-90.webp)](https://join.oanda.com/sg-en/get-more/) Tools & Resources [Tools & Resources Build a stronger trading strategy with our range of powerful tools.](https://www.oanda.com/sg-en/tools/) [Advanced charts](https://www.oanda.com/sg-en/tools/advanced-charts/) [MT4 premium indicators](https://www.oanda.com/sg-en/platforms/mt4-premium-indicators/) [Technical analysis](https://www.oanda.com/sg-en/tools/technical-analysis/) [Partners](https://www.oanda.com/sg-en/tools/partners/) [Learn](https://www.oanda.com/sg-en/trading/learn/) [Trade Tap blog](https://www.oanda.com/sg-en/trade-tap-blog/) [![Nav banner desktop (9)](https://storage.googleapis.com/web-content.oanda.com/images/Nav_banner_desktop_VRYTTZm.width-480.format-webp.webpquality-90.webp)](https://join.oanda.com/sg-en/get-more/) Account types [Account types Discover our account types and the benefits and exclusive content available with our premium packages.](https://www.oanda.com/sg-en/trading/account-comparison/) [Account comparison](https://www.oanda.com/sg-en/trading/account-comparison/) [Sub-account differences](https://www.oanda.com/sg-en/trading/sub-account-differences/) [Premium accounts](https://www.oanda.com/sg-en/trading/premium-account/) [Accredited investor](https://www.oanda.com/sg-en/trading/accredited-investor/) [![Nav banner desktop (9)](https://storage.googleapis.com/web-content.oanda.com/images/Nav_banner_desktop_VRYTTZm.width-480.format-webp.webpquality-90.webp)](https://join.oanda.com/sg-en/get-more/) Account support [How to open an account](https://www.oanda.com/sg-en/trading/how-open-account/) [Deposits & withdrawals](https://www.oanda.com/sg-en/trading/deposits-and-withdrawals/) [Refer a friend](https://www.oanda.com/sg-en/trading/refer-a-friend/) [Contact us](<mailto: frontdesk@oanda.com>) [![Nav banner desktop (9)](https://storage.googleapis.com/web-content.oanda.com/images/Nav_banner_desktop_VRYTTZm.width-480.format-webp.webpquality-90.webp)](https://join.oanda.com/sg-en/get-more/) [Login](https://hub.oanda.com/) [Sign up via Singpass](https://hub.oanda.com/apply) Trading [Instruments](https://www.oanda.com/sg-en/trading/instruments/) [Forex CFDs](https://www.oanda.com/sg-en/trading/forex/) [Share CFDs](https://www.oanda.com/sg-en/trading/shares/) [Indices CFDs](https://www.oanda.com/sg-en/trading/indices/) [Metals CFDs](https://www.oanda.com/sg-en/trading/metals/) [Commodities CFDs](https://www.oanda.com/sg-en/trading/commodities/) [Cryptocurrencies CFDs](https://www.oanda.com/sg-en/trading/cryptocurrencies/) [Bonds CFDs](https://www.oanda.com/sg-en/trading/bonds/) [Spreads & margins](https://www.oanda.com/sg-en/trading/spreads-margin/) [Historical spreads](https://www.oanda.com/sg-en/trading/historical-spreads/) [GSLOs](https://www.oanda.com/sg-en/trading/guaranteed-stop-loss-order/) [Corporate actions](https://www.oanda.com/sg-en/trading/corporate-actions/) [Our pricing](https://www.oanda.com/sg-en/trading/our-pricing/) [Our charges](https://www.oanda.com/sg-en/trading/our-charges/) [Financing costs](https://www.oanda.com/sg-en/trading/financing-costs/) [Hours of operation](https://www.oanda.com/sg-en/trading/hours-of-operation/) [Holiday trading hours](https://www.oanda.com/sg-en/trading/holiday-trading-hours/) [Trading](https://www.oanda.com/sg-en/trading/) Platforms [OANDA mobile](https://www.oanda.com/sg-en/platforms/oanda-trade-mobile/) [OANDA web](https://www.oanda.com/sg-en/platforms/oanda-trade-web/) [MetaTrader 4](https://www.oanda.com/sg-en/platforms/metatrader-4/) [MetaTrader 5](https://www.oanda.com/sg-en/platforms/metatrader-5/) [TradingView](https://www.oanda.com/sg-en/platforms/tradingview/) [Platforms](https://www.oanda.com/sg-en/platforms/) Tools & Resources [Advanced charts](https://www.oanda.com/sg-en/tools/advanced-charts/) [MT4 premium indicators](https://www.oanda.com/sg-en/platforms/mt4-premium-indicators/) [Technical analysis](https://www.oanda.com/sg-en/tools/technical-analysis/) [Partners](https://www.oanda.com/sg-en/tools/partners/) [Learn](https://www.oanda.com/sg-en/trading/learn/) [Trade Tap blog](https://www.oanda.com/sg-en/trade-tap-blog/) [Tools & Resources](https://www.oanda.com/sg-en/tools/) Account types [Account comparison](https://www.oanda.com/sg-en/trading/account-comparison/) [Sub-account differences](https://www.oanda.com/sg-en/trading/sub-account-differences/) [Premium accounts](https://www.oanda.com/sg-en/trading/premium-account/) [Accredited investor](https://www.oanda.com/sg-en/trading/accredited-investor/) Account support [How to open an account](https://www.oanda.com/sg-en/trading/how-open-account/) [Deposits & withdrawals](https://www.oanda.com/sg-en/trading/deposits-and-withdrawals/) [Refer a friend](https://www.oanda.com/sg-en/trading/refer-a-friend/) [Contact us](<mailto: frontdesk@oanda.com>) Explore more [Help](https://help.oanda.com/sg/en/home.htm?_gl=11k4rdjx_gcl_auMjA4ODY3NDUwOS4xNzE2OTg2OTIy_gaMTQ5NTg0ODQzNC4xNzA5MDM1NzQy_ga_Q2HXMSGECMMTcyMzU2MDI0My41NzQuMS4xNzIzNTYzOTcyLjExLjAuMA) [Offers](https://pages.oanda.com/202306-oap-awards-offer.html) [Legal](https://www.oanda.com/sg-en/legal/) [Login](https://hub.oanda.com/) [![Nav banner mobile (9)](https://storage.googleapis.com/web-content.oanda.com/images/Nav_ba_IoStxuF.2e16d0ba.fill-768x213.format-webp.webpquality-90.webp)](https://join.oanda.com/sg-en/get-more/) Oanda ![Open menu button](https://www.oanda.com/assets/images/Hamburger.7839b5141c39.svg) ![Close menu button](https://www.oanda.com/assets/images/Close.f07ea7819953.svg) [Learn](https://www.oanda.com/sg-en/trading/learn/) [How to build a robust trading strategy using indicators and oscillators.](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/) # Learn how to trade with Bollinger Bands® \\| OANDA #### Bollinger Bands, a technical indicator, can help traders identify overbought and oversold conditions and spot potential breakouts. ![Transparent](https://storage.googleapis.com/web-content.oanda.com/images/transparent600x600.2e16d0ba.fill-840x560.png) On This Page [Through this article you will learn](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/bollinger-bands/#through-this-article-you-will-learn) [The history of Bollinger Bands and what they are](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/bollinger-bands/#the-history-of-bollinger-bands-and-what-they-are) [What is the Bollinger Bands indicator?](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/bollinger-bands/#what-is-the-bollinger-bands-indicator) [Settings for Bollinger Bands](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/bollinger-bands/#settings-for-bollinger-bands) [How to trade using Bollinger Bands](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/bollinger-bands/#how-to-trade-using-bollinger-bands) [Importance of time frames in Bollinger Bands](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/bollinger-bands/#importance-of-time-frames-in-bollinger-bands) [Bollinger Bands squeeze strategy](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/bollinger-bands/#bollinger-bands-squeeze-strategy) [Key takeaways](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/bollinger-bands/#key-takeaways) [Further reading](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/bollinger-bands/#further-reading) [Learn](https://www.oanda.com/sg-en/trading/learn/) Difference between leveraged and other forms of financial trading. expand\_less expand\_more [What is leverage trading?](https://www.oanda.com/sg-en/trading/learn/introduction-to-leverage-trading/what-is-leverage-trading/) [Beginners guide to trading with margin](https://www.oanda.com/sg-en/trading/learn/introduction-to-leverage-trading/what-is-margin-in-trading/) [What is a pip in leverage trading?](https://www.oanda.com/sg-en/trading/learn/introduction-to-leverage-trading/what-is-a-pip/) [What does it mean to trade ‘long’ or ‘short’?](https://www.oanda.com/sg-en/trading/learn/introduction-to-leverage-trading/long-and-short-positions/) [Beginners guide to market orders](https://www.oanda.com/sg-en/trading/learn/introduction-to-leverage-trading/order-types-explained/) Use fundamental analysis to your advantage. expand\_less expand\_more [The basics of fundamental analysis](https://www.oanda.com/sg-en/trading/learn/fundamental-analysis/introduction-to-fundamental-analysis/) How is technical analysis different from fundamental analysis? expand\_less expand\_more [Technical analysis in trading](https://www.oanda.com/sg-en/trading/learn/technical-analysis/introduction-to-technical-analysis/) How to build a robust trading strategy using indicators and oscillators. expand\_less expand\_more [Beginners guide to moving averages](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/filtering-out-the-noise-moving-averages/) [MACD: Finding entry and exit points](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/determining-entry-and-exit-points-with-macd/) [Beginners guide to Fibonacci retracements](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/fibonacci-retracements/) [Beginners guide to the RSI](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/relative-strength-index-/) [How to trade with Bollinger Bands®](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/bollinger-bands/) [How to use stochastic oscillator](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/stochastic-oscillator/) ## Through this article you will learn: - What Bollinger Bands® are and their history - The importance or time-frame and settings available for Bollinger Bands - How to form trading strategy around Bollinger Bands ## The history of Bollinger Bands and what they are John Bollinger started working on the concept of bridging the gap between technical and fundamental analysis with a single visualization in an attempt to create a middle ground he referred to as ‘Rational Analysis’ in early 1980’s. He was trading options at the time and much of his analytics involved volatility. At the time fixed width trading bands were in use. Mr. Bollinger's contribution was to use volatility standard deviation to make trading bands adaptive. Originally, when presenting the tool on the Financial News Network tv channel, when asked by the interviewer what they are he replied simply ‘Let’s call them Bollinger Bands’. In 2011 John Bollinger registered the name in the U.S. ### What is the Bollinger Bands indicator? Bollinger Bands are a type of chart indicator named after their creator, John Bollinger, who took the idea of plotting moving averages one step further. He used the concept of standard deviation to define the upper and lower boundaries of a price move as against the average price of an asset (or forex pair) for any given time frame. In appearance, Bollinger Bands resemble a diaphanous stocking enveloping the moving candles on a chart and forming a sort of snake-like channel. There’s a thin line in the middle of the Bollinger Band. This line, by default, is equal to the 20-simple moving average (SMA). Candles above this line would be considered bullish, whereas candles below the line would be bearish. ## Settings for Bollinger Bands You’ll find Bollinger Bands under indicators on any chart on your OANDA trading platform. Once you’ve selected the Bollinger Band, it will wrap itself around the candles. You can select standard deviation values for Bollinger Bands in the settings area. The higher the value of the standard deviation, the wider the band and therefore, more of the price action the band will contain. Once you have added the indicator to your chart, you can adjust the deviation settings by opening the indicator settings. A window will open showing you the default setting of 2. If you raise this value to the upper values of 2 or even 3, the indicator will capture more of the price movement within the Bollinger band. You can also change the default 20 length to, say, 50, should you prefer to work with this value instead. - For a value of 1: 65% of price action is contained with the Bollinger Band - For a value of 2: around 95% of price action is contained - A standard deviation setting of 3: contains almost 99% of price action in a Bollinger Band Remember, lower settings will generate more signals, but will also increase the number of false signals, as the candles will more often push through the upper and lower lines of the Bollinger Band. ## How to trade using Bollinger Bands Because Bollinger Bands typically contain most of the instrument’s price movement, price will usually but not always keep within the Band. In the example below you’ll notice that once price touches the top of the band, it reaches a zone of overbought territory and starts to revert to the midline moving average. If the trend is strong it may bounce off the midline moving average and resume its upward climb, but generally price will cut through the middle and fall until it lands on the bottom of the band and a zone that is potentially oversold territory. From here, except in a downward trend, it is very likely to climb back up. For a trader, these tops and bottoms of price movement within a Bollinger Band can serve as entry and exit points. When it comes to using Bollinger Bands on strong trends, you may have better trading results selling the tops of Bollinger Bands on a downward trend, while refraining from trading the dips around the bottom of the bands. You may then apply the opposite approach for an upward trend. In a ranging market, the upper and lower bands can act as reliable areas of support and resistance. It’s worth noting the boundaries to these bands can be stretched to accommodate an injection of volatility, either to the upside or downside. For instance, even when candles can be seen pressing up against the top of a Bollinger Band, this doesn’t automatically give you a sell signal. This is because, if volatility is strong enough, buyers can push the bands still higher. The same applies to a downward move. In a strong trend or trend reversal, the candles will puncture the sides of the bands, forcing the bands to stretch even further. To avoid getting caught out by volatility, it is good practice to wait for some sign of confirmation that price is returning to the direction you want to trade in. So, for example, if you’ve concluded the trend is up and you wanted to go long, rather than entering a trade as the most recent candle prints against the bottom outer line of the band, wait until you see bullish candles taking price up again before placing your order. ## Importance of time frames in Bollinger Bands It is easy to forget that every Bollinger Band reflects price movement within a different time frame. The screenshot below shows the NZD/USD pair for a day and for 4 hours over the same time period. In the first chart, the daily, there is some bullish action near the base of the band and plenty of room above it. You might think to go long. However, on the four-hour chart, price is nearing the top of the band and, as the overall picture since recent days has been bearish for the dollar, a short position may in fact be a better choice. So, in cases like this it might be more prudent to look for other means of identifying which is the better trade, long or short. You could, for instance, look at what the dollar is doing against other pairs. Or you could look at other indicators, such as volume, MACD and moving averages. As with most trading decisions, it always pays to finalize your analysis with reference to more than one indicator. ## Bollinger Bands squeeze strategy Traders who are wary of relying too heavily on indicators will often make an exception when it comes to checking for a squeeze in a Bollinger Band. When price enters a period of consolidation and low volatility, the Bollinger Band starts to tighten around the narrowing range of candles. This squeeze of the band signals a high probability that price is about to break out, usually with high volume. When the breakout occurs, price will usually move in the direction of the breakout for some considerable time. Some squeezes can last days or even weeks. As you can see from the screenshot below, there was a squeeze in the Bollinger band for about six weeks before price broke out to higher levels during November of 2020. To identify a potential breakout, look at the hooks of the outer and lower Bollinger Bands. If the bands remain flat, or one band hooks but the other stays flat, the breakout isn’t there yet. But if you see both upper and lower bands opening up, you know that volatility is rising and a breakout could be about to occur. ## Key takeaways - The Bollinger Bands indicator uses the concept of standard deviation to define the upper and lower boundaries of a price move as against the average price of an asset (or forex pair) for any given time frame. - Bollinger Bands give a more faithful reading of changes in price in a ranging market. In a trending market, volatility can suddenly stretch the bands wider causing trading signals to fail. - Bollinger Bands can give a different picture for price action according to the timeframe, so it’s important you check various timeframes to establish direction and best points for entry and exit before placing a trade. - When the Bands squeeze tightly around the candlesticks on your chart, limiting their range, it is highly probable this period of consolidation will be followed by a strong breakout, either to the upside or the downside. Seeking information on how to double-check signals with various indicators? Check out the Indicators & Oscillator section available in our learning section. You may also want to explore our other educational material such as our free webinars, workshops and how-to videos. Once you’ve opened an account, live or demo, you can put your knowledge into practice. ## Further reading Other articles from \[Category name\]: - \[automatically generated TOC\] [Learn](https://www.oanda.com/sg-en/trading/learn/) Difference between leveraged and other forms of financial trading. expand\_less expand\_more [What is leverage trading?](https://www.oanda.com/sg-en/trading/learn/introduction-to-leverage-trading/what-is-leverage-trading/) [Beginners guide to trading with margin](https://www.oanda.com/sg-en/trading/learn/introduction-to-leverage-trading/what-is-margin-in-trading/) [What is a pip in leverage trading?](https://www.oanda.com/sg-en/trading/learn/introduction-to-leverage-trading/what-is-a-pip/) [What does it mean to trade ‘long’ or ‘short’?](https://www.oanda.com/sg-en/trading/learn/introduction-to-leverage-trading/long-and-short-positions/) [Beginners guide to market orders](https://www.oanda.com/sg-en/trading/learn/introduction-to-leverage-trading/order-types-explained/) Use fundamental analysis to your advantage. expand\_less expand\_more [The basics of fundamental analysis](https://www.oanda.com/sg-en/trading/learn/fundamental-analysis/introduction-to-fundamental-analysis/) How is technical analysis different from fundamental analysis? expand\_less expand\_more [Technical analysis in trading](https://www.oanda.com/sg-en/trading/learn/technical-analysis/introduction-to-technical-analysis/) How to build a robust trading strategy using indicators and oscillators. expand\_less expand\_more [Beginners guide to moving averages](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/filtering-out-the-noise-moving-averages/) [MACD: Finding entry and exit points](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/determining-entry-and-exit-points-with-macd/) [Beginners guide to Fibonacci retracements](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/fibonacci-retracements/) [Beginners guide to the RSI](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/relative-strength-index-/) [How to trade with Bollinger Bands®](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/bollinger-bands/) [How to use stochastic oscillator](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/stochastic-oscillator/) Up Next [![movingAverages-hero](https://storage.googleapis.com/web-content.oanda.com/images/movingAverages-hero.2e16d0ba.fill-370x248.png)](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/filtering-out-the-noise-moving-averages/) [Beginners guide to moving averages](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/filtering-out-the-noise-moving-averages/) Learn to identify price reversals in markets using moving averages. [Learn more](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/filtering-out-the-noise-moving-averages/) [![movingAverages-MACDtheory HERO](https://storage.googleapis.com/web-content.oanda.com/images/movingAverages-MACDtheory.2e16d0ba.fill-370x248.png)](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/determining-entry-and-exit-points-with-macd/) [MACD: Finding entry and exit points](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/determining-entry-and-exit-points-with-macd/) Use the MACD indicator (oscillator) to identify potential entry and exit points in the financial markets. [Learn more](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/determining-entry-and-exit-points-with-macd/) [![Transparent](https://storage.googleapis.com/web-content.oanda.com/images/transparent600x600.2e16d0ba.fill-370x248.png)](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/fibonacci-retracements/) [Beginners guide to Fibonacci retracements](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/fibonacci-retracements/) Learn to identify price reversals in markets using Fibonacci retracements. [Learn more](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/fibonacci-retracements/) [arrow\_upward](https://www.oanda.com/sg-en/trading/learn/indicators-oscillators/bollinger-bands/#top) ## Footer ![OANDA Logo](https://www.oanda.com/assets/images/oanda-logo.370e04d3507d.svg) [Singapore](https://www.oanda.com/region-selector/) [![Twitter](https://www.oanda.com/assets/images/social-icons/light/twitter.8bf8c8ae30bb.svg)](https://twitter.com/OANDA_APAC) [![Youtube](https://www.oanda.com/assets/images/social-icons/light/youtube.ee50dbcfc260.svg)](https://www.youtube.com/@oanda_apac) [![Facebook](https://www.oanda.com/assets/images/social-icons/light/facebook.37ba6b528947.svg)](https://www.facebook.com/profile.php?id=61559428714369) [![Linked In](https://www.oanda.com/assets/images/social-icons/light/linkedin.38a080ce4248.svg)](https://www.linkedin.com/company/oanda) [![Apple Store Icon](https://storage.googleapis.com/web-content.oanda.com/images/Apple_Store.height-50.png)](https://app.adjust.com/1b1p3uq8?redirect_android=https%3A%2F%2Fapps.apple.com%2Fsg%2Fapp%2Foanda-forex-and-cfd-trading%2Fid370922777) [![Google Play Icon](https://storage.googleapis.com/web-content.oanda.com/images/Google_Play.height-50.png)](https://app.adjust.com/1b1p3uq8?redirect_macos=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%2Fdetails%3Fid%3Dcom.oanda.fxtrade%26hl%3Den&redirect_windows=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%252) ![OANDA Logo](https://www.oanda.com/assets/images/oanda-logo.370e04d3507d.svg) [![Twitter](https://www.oanda.com/assets/images/social-icons/light/twitter.8bf8c8ae30bb.svg)](https://twitter.com/OANDA_APAC) [![Youtube](https://www.oanda.com/assets/images/social-icons/light/youtube.ee50dbcfc260.svg)](https://www.youtube.com/@oanda_apac) [![Facebook](https://www.oanda.com/assets/images/social-icons/light/facebook.37ba6b528947.svg)](https://www.facebook.com/profile.php?id=61559428714369) [![Linked In](https://www.oanda.com/assets/images/social-icons/light/linkedin.38a080ce4248.svg)](https://www.linkedin.com/company/oanda) [Singapore](https://www.oanda.com/region-selector/) [![Apple Store Icon](https://storage.googleapis.com/web-content.oanda.com/images/Apple_Store.height-50.png)](https://app.adjust.com/1b1p3uq8?redirect_android=https%3A%2F%2Fapps.apple.com%2Fsg%2Fapp%2Foanda-forex-and-cfd-trading%2Fid370922777) [![Google Play Icon](https://storage.googleapis.com/web-content.oanda.com/images/Google_Play.height-50.png)](https://app.adjust.com/1b1p3uq8?redirect_macos=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%2Fdetails%3Fid%3Dcom.oanda.fxtrade%26hl%3Den&redirect_windows=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%252) ![OANDA Logo](https://www.oanda.com/assets/images/oanda-logo.370e04d3507d.svg) [Singapore](https://www.oanda.com/region-selector/) [![Twitter](https://www.oanda.com/assets/images/social-icons/light/twitter.8bf8c8ae30bb.svg)](https://twitter.com/OANDA_APAC) [![Youtube](https://www.oanda.com/assets/images/social-icons/light/youtube.ee50dbcfc260.svg)](https://www.youtube.com/@oanda_apac) [![Facebook](https://www.oanda.com/assets/images/social-icons/light/facebook.37ba6b528947.svg)](https://www.facebook.com/profile.php?id=61559428714369) [![Linked In](https://www.oanda.com/assets/images/social-icons/light/linkedin.38a080ce4248.svg)](https://www.linkedin.com/company/oanda) [![Apple Store Icon](https://storage.googleapis.com/web-content.oanda.com/images/Apple_Store.height-50.png)](https://app.adjust.com/1b1p3uq8?redirect_android=https%3A%2F%2Fapps.apple.com%2Fsg%2Fapp%2Foanda-forex-and-cfd-trading%2Fid370922777) [![Google Play Icon](https://storage.googleapis.com/web-content.oanda.com/images/Google_Play.height-50.png)](https://app.adjust.com/1b1p3uq8?redirect_macos=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%2Fdetails%3Fid%3Dcom.oanda.fxtrade%26hl%3Den&redirect_windows=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%252) Trading expand\_more - [Instruments](https://www.oanda.com/sg-en/trading/instruments/) - [Tools](https://www.oanda.com/sg-en/tools/) - [Accounts](https://www.oanda.com/sg-en/trading/account-comparison/) - [Hours of operation](https://www.oanda.com/sg-en/trading/hours-of-operation/) - [Holiday trading hours](https://www.oanda.com/sg-en/trading/holiday-trading-hours/) Products expand\_more - [Forex CFDs](https://www.oanda.com/sg-en/trading/forex/) - [Share CFDs](https://www.oanda.com/sg-en/trading/shares/) - [Indices CFDs](https://www.oanda.com/sg-en/trading/indices/) - [Commodities CFDs](https://www.oanda.com/sg-en/trading/commodities/) - [Crypto CFDs](https://www.oanda.com/sg-en/trading/cryptocurrencies/) - [Bonds CFDs](https://www.oanda.com/sg-en/trading/bonds/) Platforms expand\_more - [OANDA Mobile](https://www.oanda.com/sg-en/platforms/oanda-trade-mobile/) - [OANDA Web](https://www.oanda.com/sg-en/platforms/oanda-trade-web/) - [TradingView](https://www.oanda.com/sg-en/platforms/tradingview/) - [MetaTrader 4](https://www.oanda.com/sg-en/platforms/metatrader-4/) - [MetaTrader 5](https://www.oanda.com/sg-en/platforms/metatrader-5/) Resources expand\_more - [Help](https://help.oanda.com/sg/en/home.htm) - [Learn](https://www.oanda.com/sg-en/trading/learn/) - [Webinars & events](https://www.oanda.com/sg-en/trading/webinars/) - [Trade Tap blog](https://www.oanda.com/sg-en/trade-tap-blog/) About expand\_more - [OANDA Group](https://www.oanda.com/group/) - [Awards](https://www.oanda.com/sg-en/awards/) - [Become a partner](https://partners.oanda.com/en/) - [Careers](https://www.oanda.com/group/culture/job-openings/) - [Legal documents](https://www.oanda.com/sg-en/legal/) - [Security practices](https://www.oanda.com/sg-en/security-practices/) - Cookies Settings Get started with the OANDA app expand\_more - [Download on the App Store](https://app.adjust.com/1b1p3uq8?redirect_android=https%3A%2F%2Fapps.apple.com%2Fsg%2Fapp%2Foanda-forex-and-cfd-trading%2Fid370922777) - [Get it on Google Play](https://app.adjust.com/1b1p3uq8?redirect_macos=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%2Fdetails%3Fid%3Dcom.oanda.fxtrade%26hl%3Den&redirect_windows=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%2Fdetails%3Fid%3Dcom.oanda.fxtrade%26hl%3Den) - [Trade on TradingView](https://www.tradingview.com/broker/OANDA/) ### Trading - [Instruments](https://www.oanda.com/sg-en/trading/instruments/) - [Tools](https://www.oanda.com/sg-en/tools/) - [Accounts](https://www.oanda.com/sg-en/trading/account-comparison/) - [Hours of operation](https://www.oanda.com/sg-en/trading/hours-of-operation/) - [Holiday trading hours](https://www.oanda.com/sg-en/trading/holiday-trading-hours/) ### Products - [Forex CFDs](https://www.oanda.com/sg-en/trading/forex/) - [Share CFDs](https://www.oanda.com/sg-en/trading/shares/) - [Indices CFDs](https://www.oanda.com/sg-en/trading/indices/) - [Commodities CFDs](https://www.oanda.com/sg-en/trading/commodities/) - [Crypto CFDs](https://www.oanda.com/sg-en/trading/cryptocurrencies/) - [Bonds CFDs](https://www.oanda.com/sg-en/trading/bonds/) ### Platforms - [OANDA Mobile](https://www.oanda.com/sg-en/platforms/oanda-trade-mobile/) - [OANDA Web](https://www.oanda.com/sg-en/platforms/oanda-trade-web/) - [TradingView](https://www.oanda.com/sg-en/platforms/tradingview/) - [MetaTrader 4](https://www.oanda.com/sg-en/platforms/metatrader-4/) - [MetaTrader 5](https://www.oanda.com/sg-en/platforms/metatrader-5/) ### Resources - [Help](https://help.oanda.com/sg/en/home.htm) - [Learn](https://www.oanda.com/sg-en/trading/learn/) - [Webinars & events](https://www.oanda.com/sg-en/trading/webinars/) - [Trade Tap blog](https://www.oanda.com/sg-en/trade-tap-blog/) ### About - [OANDA Group](https://www.oanda.com/group/) - [Awards](https://www.oanda.com/sg-en/awards/) - [Become a partner](https://partners.oanda.com/en/) - [Careers](https://www.oanda.com/group/culture/job-openings/) - [Legal documents](https://www.oanda.com/sg-en/legal/) - [Security practices](https://www.oanda.com/sg-en/security-practices/) - Cookies Settings ### Get started with the OANDA app - [Download on the App Store](https://app.adjust.com/1b1p3uq8?redirect_android=https%3A%2F%2Fapps.apple.com%2Fsg%2Fapp%2Foanda-forex-and-cfd-trading%2Fid370922777) - [Get it on Google Play](https://app.adjust.com/1b1p3uq8?redirect_macos=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%2Fdetails%3Fid%3Dcom.oanda.fxtrade%26hl%3Den&redirect_windows=https%3A%2F%2Fplay.google.com%2Fstore%2Fapps%2Fdetails%3Fid%3Dcom.oanda.fxtrade%26hl%3Den) - [Trade on TradingView](https://www.tradingview.com/broker/OANDA/) © 1996 - 2026 OANDA Corporation. All rights reserved. "OANDA", "fxTrade" and OANDA's "fx" family of trademarks are owned by OANDA Corporation. All other trademarks appearing on this website are the property of their respective owners. Contracts for Difference (CFDs) are leveraged products and carry a high level of risk. It may not be suitable for everyone. We advise you to carefully consider whether trading is appropriate for you in light of your personal circumstances. You may lose more than you deposit. Information on this website is general in nature. It should not be construed as investment or financial advice. We recommend that you seek independent financial advice and ensure you fully understand the risks involved before trading. Trading through an online platform carries additional risks. Refer to our legal section [here](https://www.oanda.com/sg-en/legal/). OANDA Asia Pacific Pte Ltd (Co. Reg. No 200704926K) holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore. OANDA Asia Pacific Pte Ltd has its office at 1 Raffles Place \#26-02, One Raffles Place Tower 1 Singapore 048616. If you’d like to visit our office, please make an appointment by emailing us at [frontdesk@oanda.com](mailto:frontdesk@oanda.com). This advertisement has not been reviewed by the Monetary Authority of Singapore. Leverage trading is high risk. Losses can exceed deposits.
Readable Markdown	- What Bollinger Bands® are and their history - The importance or time-frame and settings available for Bollinger Bands - How to form trading strategy around Bollinger Bands John Bollinger started working on the concept of bridging the gap between technical and fundamental analysis with a single visualization in an attempt to create a middle ground he referred to as ‘Rational Analysis’ in early 1980’s. He was trading options at the time and much of his analytics involved volatility. At the time fixed width trading bands were in use. Mr. Bollinger's contribution was to use volatility standard deviation to make trading bands adaptive. Originally, when presenting the tool on the Financial News Network tv channel, when asked by the interviewer what they are he replied simply ‘Let’s call them Bollinger Bands’. In 2011 John Bollinger registered the name in the U.S. Bollinger Bands are a type of chart indicator named after their creator, John Bollinger, who took the idea of plotting moving averages one step further. He used the concept of standard deviation to define the upper and lower boundaries of a price move as against the average price of an asset (or forex pair) for any given time frame. In appearance, Bollinger Bands resemble a diaphanous stocking enveloping the moving candles on a chart and forming a sort of snake-like channel. There’s a thin line in the middle of the Bollinger Band. This line, by default, is equal to the 20-simple moving average (SMA). Candles above this line would be considered bullish, whereas candles below the line would be bearish. You’ll find Bollinger Bands under indicators on any chart on your OANDA trading platform. Once you’ve selected the Bollinger Band, it will wrap itself around the candles. You can select standard deviation values for Bollinger Bands in the settings area. The higher the value of the standard deviation, the wider the band and therefore, more of the price action the band will contain. Once you have added the indicator to your chart, you can adjust the deviation settings by opening the indicator settings. A window will open showing you the default setting of 2. If you raise this value to the upper values of 2 or even 3, the indicator will capture more of the price movement within the Bollinger band. You can also change the default 20 length to, say, 50, should you prefer to work with this value instead. - For a value of 1: 65% of price action is contained with the Bollinger Band - For a value of 2: around 95% of price action is contained - A standard deviation setting of 3: contains almost 99% of price action in a Bollinger Band Remember, lower settings will generate more signals, but will also increase the number of false signals, as the candles will more often push through the upper and lower lines of the Bollinger Band. Because Bollinger Bands typically contain most of the instrument’s price movement, price will usually but not always keep within the Band. In the example below you’ll notice that once price touches the top of the band, it reaches a zone of overbought territory and starts to revert to the midline moving average. If the trend is strong it may bounce off the midline moving average and resume its upward climb, but generally price will cut through the middle and fall until it lands on the bottom of the band and a zone that is potentially oversold territory. From here, except in a downward trend, it is very likely to climb back up. For a trader, these tops and bottoms of price movement within a Bollinger Band can serve as entry and exit points. When it comes to using Bollinger Bands on strong trends, you may have better trading results selling the tops of Bollinger Bands on a downward trend, while refraining from trading the dips around the bottom of the bands. You may then apply the opposite approach for an upward trend. In a ranging market, the upper and lower bands can act as reliable areas of support and resistance. It’s worth noting the boundaries to these bands can be stretched to accommodate an injection of volatility, either to the upside or downside. For instance, even when candles can be seen pressing up against the top of a Bollinger Band, this doesn’t automatically give you a sell signal. This is because, if volatility is strong enough, buyers can push the bands still higher. The same applies to a downward move. In a strong trend or trend reversal, the candles will puncture the sides of the bands, forcing the bands to stretch even further. To avoid getting caught out by volatility, it is good practice to wait for some sign of confirmation that price is returning to the direction you want to trade in. So, for example, if you’ve concluded the trend is up and you wanted to go long, rather than entering a trade as the most recent candle prints against the bottom outer line of the band, wait until you see bullish candles taking price up again before placing your order. It is easy to forget that every Bollinger Band reflects price movement within a different time frame. The screenshot below shows the NZD/USD pair for a day and for 4 hours over the same time period. In the first chart, the daily, there is some bullish action near the base of the band and plenty of room above it. You might think to go long. However, on the four-hour chart, price is nearing the top of the band and, as the overall picture since recent days has been bearish for the dollar, a short position may in fact be a better choice. So, in cases like this it might be more prudent to look for other means of identifying which is the better trade, long or short. You could, for instance, look at what the dollar is doing against other pairs. Or you could look at other indicators, such as volume, MACD and moving averages. As with most trading decisions, it always pays to finalize your analysis with reference to more than one indicator. Traders who are wary of relying too heavily on indicators will often make an exception when it comes to checking for a squeeze in a Bollinger Band. When price enters a period of consolidation and low volatility, the Bollinger Band starts to tighten around the narrowing range of candles. This squeeze of the band signals a high probability that price is about to break out, usually with high volume. When the breakout occurs, price will usually move in the direction of the breakout for some considerable time. Some squeezes can last days or even weeks. As you can see from the screenshot below, there was a squeeze in the Bollinger band for about six weeks before price broke out to higher levels during November of 2020. To identify a potential breakout, look at the hooks of the outer and lower Bollinger Bands. If the bands remain flat, or one band hooks but the other stays flat, the breakout isn’t there yet. But if you see both upper and lower bands opening up, you know that volatility is rising and a breakout could be about to occur. - The Bollinger Bands indicator uses the concept of standard deviation to define the upper and lower boundaries of a price move as against the average price of an asset (or forex pair) for any given time frame. - Bollinger Bands give a more faithful reading of changes in price in a ranging market. In a trending market, volatility can suddenly stretch the bands wider causing trading signals to fail. - Bollinger Bands can give a different picture for price action according to the timeframe, so it’s important you check various timeframes to establish direction and best points for entry and exit before placing a trade. - When the Bands squeeze tightly around the candlesticks on your chart, limiting their range, it is highly probable this period of consolidation will be followed by a strong breakout, either to the upside or the downside. Seeking information on how to double-check signals with various indicators? Check out the Indicators & Oscillator section available in our learning section. You may also want to explore our other educational material such as our free webinars, workshops and how-to videos. Once you’ve opened an account, live or demo, you can put your knowledge into practice. Other articles from \[Category name\]: - \[automatically generated TOC\] Difference between leveraged and other forms of financial trading. expand\_less expand\_more Use fundamental analysis to your advantage. expand\_less expand\_more How is technical analysis different from fundamental analysis? expand\_less expand\_more How to build a robust trading strategy using indicators and oscillators. expand\_less expand\_more
Shard	22 (laksa)
Root Hash	6683013565514888222
Unparsed URL	com,oanda!www,/sg-en/trading/learn/indicators-oscillators/bollinger-bands/ s443