What are Bollinger Bands in crypto?

Though Bollinger bands are popular in the traditional market, the crypto market is no exception and traders do embrace this indicator. That is especially when volatility indicators are imperative in cryptocurrency trading. The Middle band — Simple Moving Average (SMA).

What is the Bollinger Bands indicator?

The Bollinger Bands indicator reveals market trends and volatility and identifies overbought and oversold market conditions. It consists of three bands: the upper, middle, and lower. Traders use the bands to analyze price action to determine what is going on in the market.

What are the three bands of the Bollinger Band?

It consists of three bands: the upper, middle, and lower. Traders use the bands to analyze price action to determine what is going on in the market. John Bollinger developed this indicator in the 1980s, and it has since been used in different financial markets, including the crypto market.

What are bidbollinger bands?

Bollinger Bands consist of a band of three lines which are plotted in relation to security prices. The line in the middle is usually a Simple Moving Average (SMA) set to a period of 20 days (The type of trend line and period can be changed by the trader; however a 20 day moving average is by far the most popular).