Definitions
In plain terms
The traditional form uses a 20-period simple moving average of close with bands two standard deviations above and below it.
Technical
A reproducible contract freezes price source, lookback, center type, population or sample deviation, multiplier, current-row inclusion, readiness, and display offset.
Scope
The defaults are configurable and band contact is not an automatic buy or sell signal.
Examples
- A reviewer traces Bollinger Bands from aligned inputs through its first-ready row and edge cases before accepting a displayed value.
Common misconceptions
- The defaults are configurable and band contact is not an automatic buy or sell signal.
Concept relationships
Related
Where this concept is used
Evidence and governance
- Bollinger Bands Rules John Bollinger · first party methodology
Supports: preferred label, short definition, technical definition
Limits: Interpretive rules do not prove forecasting power, trade profitability, or one universal parameter selection.
- Bollinger Bands TradingView · official platform documentation
Supports: preferred label, short definition, technical definition
Limits: Platform behavior and interpretation are not universal standards and do not replace the local frozen variant.
- TA-Lib Bollinger Bands TA-Lib · first party technical publication
Supports: preferred label, short definition, technical definition
Limits: TA-Lib permits moving-average variants beyond the local close-SMA and population-deviation contract.
- Reviewed by
- fintech-builder-batch-009
- Last reviewed
- 2026-07-30
- Next review
- 2027-07-30
- Record status
- published