FTB-C000489 / Financial concept

Collapsed Bollinger Bands

Collapsed Bollinger Bands occur when rolling dispersion is zero and all three bands share the same value.

Also known aszero-width Bollinger Bands

Definitions

In plain terms

A constant close window produces a valid zero-width channel after warm-up.

Technical

The middle and bands remain ready, but Percent B is unavailable because its upper-minus-lower denominator is zero.

Scope

Collapsed bands are not the same as missing bands or a guaranteed future expansion.

Examples

  • A reviewer traces Collapsed Bollinger Bands from aligned inputs through its first-ready row and edge cases before accepting a displayed value.

Common misconceptions

  • Collapsed bands are not the same as missing bands or a guaranteed future expansion.

Concept relationships

Where this concept is used

Evidence and governance

  1. 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.

  2. 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