John Bollinger is behind the birth (in the early 1980s) of a technical analysis tool called Bollinger Bands. This measure is made of the simple moving average (SMA) of the token in question, the standard deviation of the token’s price. Furthermore, add and subtract that amount from each point along the SMA by multiplying the standard deviation by two- the upper and lower bands are created by this. The simple moving average and the upper and lower bands of the standard deviation of the average trend lines make up this measure. Bollinger bands can be used to determine whether a cryptocurrency is oversold or overbought, as well as the likelihood of asset volatility. Bollinger bands are sometimes known as lagging indicators because they only infer information after a change has occurred. Bollinger bands can be used by traders to confirm whether or not a long-term trend has moved. In this post, we’ll show you how to use Bollinger Bands for crypto trading to help you understand one of the most reliable indicators ever produced. Three Lines in Bollinger Bands Bollinger bands have three lines: upper, lower, and middle. The middle band is a moving average, and its settings are set by the trader. The upper and lower bands are located on either side of the moving average band. The trader chooses the number of standard deviations for the volatility indicator. The number of standard deviations determines the distance between the middle ba...
