Bollinger Band

A Bollinger band is a charting tool which depict highs and lows in relation to each other on an ongoing, dynamic basis. Bollinger bands are made up of an envelope (an upper and a lower line tracing the highs and lows of a rate) and a third line which traces the rate’s simple moving average.

This type of chart is primarily used in chart analysis of securities markets to measure the volatility of investment vehicles.

More on this topic:
Swiss securities broker comparison

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