Bollinger Bands in Forex
A clear definition of Bollinger Bands, with practical context for reading markets and making better trading decisions.
Definition
A moving average wrapped by bands that expand and contract with volatility. They describe relative stretch and compression, not automatic buy and sell zones.
Practical forex example
Narrowing bands can show volatility compression before a larger move.
Why Bollinger Bands matters
Understanding Bollinger Bands helps traders interpret market information, plan decisions, and manage risk with more context.
Related forex terms
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