It may also be helpful to read our article on a stock's bollinger bands to gain more context before reading the following: Click Here
Bollinger Bands are a popular technical analysis tool that is used to help identify potential buying and selling opportunities in the stock market. Developed by John Bollinger in the 1980s, Bollinger Bands are a type of statistical chart that consists of a central moving average line and two outer bands that are plotted at a specified number of standard deviations above and below the central line.
The purpose of Bollinger Bands is to provide a relative definition of high and low prices for a particular stock. When the stock's price is relatively high, the upper band will be relatively far from the central moving average line. Conversely, when the stock's price is relatively low, the lower band will be relatively close to the central moving average line.
One important aspect of Bollinger Bands is that they adjust to market volatility. When the market is more volatile, the bands will widen, and when the market is less volatile, the bands will narrow. This is because the bands are plotted a specified number of standard deviations above and below the central line, and standard deviation is a measure of volatility. As a result, Bollinger Bands can help traders and investors identify potential buying or selling opportunities based on the relative position of the stock's price to the upper and lower bands.
Bollinger Band Bullish Signal alerts trigger when the stock's latest price crosses below the stock's lower bollinger band (20,2).
Bollinger Band Bearish Signal alerts trigger when the stock's latest price above below the stock's upper bollinger band (20,2).
With Stock Alarm you can set bollinger band alerts on stocks, etfs, crypto, indices, commodities, and more. When your alert triggers you will receive a notification via push notification, email, phone call, or text message.
Disclaimer
DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.