SR Trend Lines - Bollinger Bands
In this lesson we will introduce a new indicator called Bollinger Bands.
Bollinger Bands (BBs) are essentially a simple moving average (SMA) in the shape of a channel, defined by standard deviations either side of the moving average, rather than the usual single line. Bollinger Bands combine the traits of channels and SMAs, and can tell us about both S/R and momentum at the same time.
Bollinger Bands have several advantages over indicators and we will review some of them in this lesson.