How to Use Bollinger Bands [Bollinger Bands] + Combining with MACD

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  • Math

  • High School

  • 12th grade

  • Calculus and Advanced Math Concepts

  • English

Author's Instructions

The Bollinger Bands indicator is a powerful technical analysis tool that uses a simple moving average to evaluate pricevolatility.

Well-drawn outer bands allow traders to identify overbought and oversold zones, while changes in bandwidth can signal either trend strength or potential price reversals.

It is often recommended that Bollinger Bands be used alongside other volatility indicators or technical tools to generate more accurate trading signals.