Mastering Bollinger Bands for Effective Trading
Intro
Bollinger Bands are among the most respected technical indicators in trading circles. They help traders assess market volatility while giving essential cues about buying or selling opportunities. Unfortunately, they often confuse those just dipping their toes into the vast ocean of financial markets. In this guide, we aim to demystify Bollinger Bands, breaking them down into bite-sized, digestible concepts suitable for both the curious beginner and the battle-hardened veteran.
You’ll walk away with a strong grasp on what these bands represent, how they operate in different market conditions, and how to wield them as part of your trading toolkit.
Understanding Bollinger Bands
Bollinger Bands, introduced by John Bollinger in the 1980s, are essentially a set of three lines plotted on a price chart: the middle line, usually a simple moving average, surrounded by an upper and lower band. The positioning of these bands adjusts based on market volatility, allowing traders to easily gauge whether prices are high or low on a relative basis.
Key Components of Bollinger Bands:
- Middle Band: This is typically a 20-period simple moving average (SMA). It serves as the baseline for the upper and lower bands.
- Upper Band: This band is calculated by taking the middle band and adding a defined number of standard deviations (commonly set at 2).
- Lower Band: Conversely, this one subtracts the same number of standard deviations from the middle band.
The distance between the upper and lower bands changes with volatility: when the market is calm, the bands contract; during turbulent times, they widen. This reaction underscores one of the main uses of Bollinger Bands: they help traders identify potential price reversals and breakouts.
Interpretation of Bollinger Bands
Understanding how to read Bollinger Bands is pivotal in making informed trading decisions. Here are a few key interpretations:
- Price Touching the Upper Band: This behavior may indicate that the security is overbought, often leading to a price correction.
- Price Touching the Lower Band: Similarly, this might suggest that the asset is oversold and could rebound.
- Squeezes: When the bands come together, this often indicates that a volatility breakout is imminent. Traders often look to enter positions just before this volatility spike.
"Volatility is like air, the more you compress it, the more explosive it becomes."
Practical Applications of Bollinger Bands
The significance of Bollinger Bands goes beyond just being a visual tool. They play a crucial role in formulating effective trading strategies. Here are some practical applications:
- Trend Following: Traders can utilize Bollinger Bands to identify the general trend direction. For example, when the price consistently touches and bounces off the upper band, it may signal a strong uptrend.
- Volatility Indicators: By monitoring the width of the bands, traders can gauge market volatility. Wider bands suggest higher volatility, while narrower bands indicate a quieter market.
- Combining with Other Indicators: For enhanced precision, traders often use Bollinger Bands in conjunction with other indicators, such as Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD).
When understood and implemented correctly, Bollinger Bands can serve as a cornerstone for a trader’s analytical arsenal, facilitating more strategic decision-making and ultimately leading to better potential outcomes.
Finale
As we peel back the layers on Bollinger Bands, it becomes apparent that this tool is not just about interpretation; it’s about application. By arming yourself with a clear understanding of Bollinger Bands, you’re one step closer to crafting a resilient trading strategy that stands the test of time.
Prologue to Technical Analysis
In the world of financial trading, technical analysis stands as a crucial pillar. Rather than relying solely on fundamental indicators like earnings reports or economic data, technical analysis leans heavily on historical price movements and trading volumes to make forecasts. This methodology offers traders a roadmap to anticipate future market behaviors based on patterns and trends.
The dynamic nature of trading requires a keen understanding of how different market variables interact. As traders navigate through the complexities of graphs and charts, they uncover valuable insights that influence their decision-making. This section focuses on the importance of technical analysis, particularly how it lays the groundwork for effective trading strategies.
By marrying facts and figures with visualizations, technical analysis crystallizes market sentiment and allows users to gauge whether an asset is overbought or oversold. This is highly beneficial for investors looking to capitalize on short-term price swings. Don't underestimate its power; many successful traders make their marks almost exclusively through technical analysis.
In the subsequent sections, we will delve into two foundational elements of technical analysis: understanding charts and the importance of indicators.
Understanding Charts
Charts are basically the canvases where the dynamics of supply and demand are illustrated. They take various forms, such as line charts, bar charts, and candlestick charts, each offering unique perspectives. Among these, candlestick charts are particularly popular for their detail, displaying not just price movements but also time intervals. This dual view helps traders identify reversals and consolidations, vital moments for any trading strategy.
The construction of these charts isn't random; it’s based on historical data, allowing traders to spot recurring patterns. For instance, if a trader notices a consistent uptrend followe by sideways movement, they might interpret this as a bullish flag, hinting at a future price surge. Understanding these visual cues can be tantamount to holding the key to a guarded treasure.
The Importance of Indicators
Indicators complement charts by quantifying trends and volatility. These mathematical calculations, drawn from price data, help traders identify entry and exit points effectively. In technical jargon, indicators can shine a spotlight on market movements that might not be visible to the naked eye.
Consider the moving average as an example. This indicator smooths out price data over a specific period, offering a clearer picture of the trend's direction. As traders, recognizing when the price crosses above its moving average can signal a strong momentum shift, urging them to act quickly.
Other notable indicators, such as the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD), serve similar purposes, each tailored to signal momentum or potential reversals. Utilizing a combination of these indicators often leads to a more robust analysis.
"In the realm of trading, knowledge isn’t just power; it’s profit."
Both charts and indicators play vital roles in developing an informed trading plan. An adept trader combines these tools to create a strategy that minimizes risk while maximizing potential returns. As we move further into this guide, we will explore more about Bollinger Bands as a step towards demystifying technical analysis even further.
What are Bollinger Bands?
Bollinger Bands are a vital instrument in the toolkit of traders, providing insight into market trends and potential price movements. Developed by John Bollinger in the 1980s, this tool offers a unique way to visualize market volatility. By understanding the structure and components of Bollinger Bands, traders can better navigate the ups and downs of the market. The bands adjust to market conditions, allowing users to adapt their strategies, making them a popular choice among both novice and seasoned investors.
Components of Bollinger Bands
Bollinger Bands consist of three main parts: the Simple Moving Average, the Upper Band, and the Lower Band. Each of these components plays a distinct role in analyzing market trends and volatility.
Simple Moving Average
The Simple Moving Average (SMA) is the backbone of Bollinger Bands. It’s calculated by averaging the closing prices of a security over a specified number of periods. For this article, the SMA typically looks at a 20-day period, but traders might adjust this based on their specific strategy.
- Key Characteristic: The SMA smooths out price fluctuations, helping to clarify the overall trend.
- Why it’s Popular: Because of its simplicity and effectiveness, the SMA is widely used in various trading strategies. It provides a clear basis from which the upper and lower bands derive their values.
One unique aspect of the SMA is its lagging nature—it operates on past prices, meaning it may not react swiftly to abrupt market shifts. This can be seen as a disadvantage for those seeking immediate signals but can also prevent knee-jerk reactions to market noise.
Upper Band
The Upper Band is calculated by taking the SMA and adding a certain number of standard deviations (usually two) to account for volatility. It acts as a ceiling for price movements.
- Key Characteristic: This band defines the highest price level that an asset is generally expected to reach in a given context of volatility.
- Benefit: Traders often view it as an indicator of overbought conditions. When the price touches the Upper Band, the security may be considered overvalued, signaling a potential reversal.
However, it’s essential to note this is not a rigid rule. Prices can exceed the Upper Band in strong bullish trends, making its interpretation context-dependent.
Lower Band
Conversely, the Lower Band is formed by deducting the same set of standard deviations from the SMA. It signifies the lower threshold for market price behavior.
- Key Characteristic: The Lower Band suggests a price level that may be considered oversold.
- Why it’s Beneficial: Similar to its upper counterpart, when the price approaches this band, it indicates that the asset might be undervalued, which could present buying opportunities.
One distinct advantage of the Lower Band is its ability to highlight potential trends early—provided traders are watching closely. Yet, like the Upper Band, fluctuations can occur, especially in choppy markets, which may lead to false signals.
How They Are Calculated
To arrive at the Bollinger Bands, a trader must first compute the Simple Moving Average and then determine the standard deviation of the price over the same period. The formula can be laid out as follows:
- Calculate the SMA:
[ extSMA = \fracP_1 + P_2 + P_3 + + P_nn
]
Where P is the price and n is the number of periods. - Calculate the Standard Deviation:
[ ] - Upper Band Calculation:
[ extUpper Band = extSMA + (2 * \textSTD)
] - Lower Band Calculation:
[ extLower Band = extSMA - (2 * \textSTD)
]
This calculation might be daunting at first but it becomes easier with practice. Various charting software can help streamline the process, taking some of the guesswork out for traders.
Understanding these calculations is key for anyone looking to implement Bollinger Bands effectively in their trading strategies.
In summary, the components of Bollinger Bands work cohesively to provide crucial insights into market volatility. By grasping their individual functions, traders can make informed decisions adapted to market nuances.
Understanding Market Volatility
Market volatility is that unpredictable beast that traders must grapple with daily. It reflects how much the price of an asset fluctuates over time, revealing the market's emotional reactions to news, economic changes, and other influential factors. Understanding this aspect is fundamental not just for effective trading; it allows investors and traders to gauge risks in deeper ways. Still, not all volatility is created equal—what can seem like a wild ride to one trader may signal opportunity to another.
Defining Volatility in Trading
Volatility in trading typically indicates the degree of variation of trading prices over a specified period. It’s like measuring the heartbeat of the market—sometimes it races, and other times it's steady as she goes. High volatility means that prices can change rapidly in either direction, creating potential for significant profits but also substantial losses. Conversely, low volatility translates to prices that change little over time, often resulting in lackluster profits.
When we talk about measuring volatility, common methods include:
- Standard Deviation: This gauges the dispersion of price movements. A higher standard deviation suggests greater volatility.
- Average True Range (ATR): By measuring the range of price movement, ATR helps understand how much an asset typically moves in a given period, helping traders plan their strategies accordingly.
- Beta: This compares an asset’s movements to the market as a whole, giving insight into whether the stock is more or less volatile than the broader market.
Investors must understand that volatility often accompanies potential benefits—the trick is to manage that risk. A keen eye on volatility helps traders decide when to jump in or opt-out, refining the possibility of securing gains.
Role of Bollinger Bands in Volatility Assessment
Bollinger Bands serve as a crucial tool in assessing market volatility—they offer a visual representation that stands out in stark contrast to price charts filled with noise.
The bands consist of three lines:
- The middle line (the simple moving average) tracks the average price over a specified period.
- The upper band is the average plus a set number of standard deviations, signaling overbought conditions when prices lead against it.
- The lower band denotes the average minus that same number of standard deviations, expressing oversold conditions.
By monitoring price movements in relation to these bands, traders can assess market volatility.
"When the bands narrow, it indicates low volatility, often preceding a price breakout. Conversely, if the bands widen, high volatility is present."
This visual cue equips traders to interpret market conditions effectively. If the price dips close to the lower band, it might be advantageous to explore buying options. Conversely, if prices cling near the upper band, a sell strategy could be in play.
Bollinger Bands don’t paint the full picture alone; they’re best utilized in conjunction with other indicators, forming a composite understanding of the market landscape. The nuances of market volatility require careful consideration. By leveraging Bollinger Bands accurately, traders can navigate through the unpredictable waves of market movement with greater confidence.
Interpreting Bollinger Bands
Interpreting Bollinger Bands is crucial for traders seeking to understand market sentiment and price behavior. It helps in making informed decisions, navigating through volatile waters with a clearer perspective. This section aims to unpack the nuances of how Bollinger Bands reveal potential trading opportunities by interpreting price actions and trends.
Signals of Price Action
Understanding the signals that Bollinger Bands send out can be a game-changer in trading. It's like having a compass; once you learn how to read it, you’ll find your way more easily through the market.
Price Bouncing off the Bands
When the price of an asset touches the upper or lower band, it often indicates that the asset is either overbought or oversold. This scenario can signal potential reversals. A key characteristic of Price Bouncing off the Bands is that it reflects market psychology, showcasing where traders might begin to feel that the asset is too expensive or too cheap.
This aspect is very popular among traders because it allows them to anticipate price corrections. For instance, when prices repeatedly bounce off the lower band, it can suggest that buying pressure is building, potentially signaling a bullish reversal. The unique feature of this signal is its ability to serve as a cue for both entry and exit points in a trade.
However, it’s worth mentioning that not every bounce generates significant results. False signals can occur, particularly in choppy markets, where prices bounce between bands without following through on a reversal. Understanding these subtleties is essential to using this strategy effectively.
Price Breakouts
On the flip side, Price Breakouts occur when the price moves beyond the upper or lower bands. This can be a strong indicator of continued momentum in the direction of the breakout. A key characteristic of breakouts is that they often lead to significant price movement, earning them a reputation as a lucrative opportunity in trading.
This signal wins favor because it invites traders to participate early in a strong price move. The unique feature here lies in its potential to capitalize on momentum, especially when confirmed by volume increases. Traders often regard breakouts as a chance to act decisively.
However, similar to bounces, breakouts can also produce false signals. In certain market conditions, an apparent breakout might be a brief excursion beyond the band before prices revert back. This is where experience and caution come into play. Taking stock of other market indicators can amplify the effectiveness of interpreting these breakouts.
Trend Identification
Identifying trends through Bollinger Bands provides traders with insights into overall market direction. When the bands widen, it often means the market is experiencing heightened volatility and potential trends become more pronounced. Conversely, narrowing bands usually signal a period of low volatility, where the market is consolidating.
Moreover, the direction of the moving average at the center of the bands is a pivotal guide. For instance, if the price tends upward and the moving average aligns, then a bullish trend may be in place. Contrarily, if prices are falling and below the moving average, it could indicate a bearish market.
To sum it up, understanding how to interpret Bollinger Bands is less about isolated signals and more about the comprehensive story they tell within the context of market conditions and trends. Traders who grasp these concepts can better navigate the complexities of trading, enhancing their decision-making prowess.
"In the trading world, context is your ally; knowing how to interpret the signals makes all the difference."
For further reading on trends and Bollinger Bands, resources such as Investopedia and TradingView can provide deeper insights.
Limitations of Bollinger Bands
Bollinger Bands have carved out a significant space in the world of technical analysis, but like any tool, they come with their share of limitations. Understanding these limitations is crucial for any investor looking to use Bollinger Bands effectively. They can paint a pretty picture of potential market trends, but relying solely on them can be akin to trying to navigate a ship through fog with only a single lighthouse in the distance. Let's delve into the common pitfalls.
False Signals
One of the most persistent problems traders face with Bollinger Bands is the occurrence of false signals. These are instances where the indicator may suggest a bullish or bearish trend, but the market behaves contrary to what was expected. For example, when the price touches the upper band, many traders might interpret this as a sign to sell, thinking that the asset is overbought. Conversely, when prices reach the lower band, it could signal a buying opportunity as it appears the asset is oversold.
However, the tricky part is that these signals don’t always lead to the anticipated market movement. The market can remain overbought or oversold for extended periods, causing traders to miss opportunities or suffer losses.
"Relying solely on Bollinger Bands without considering the broader market context is like trying to read a book with half the pages torn out."
To mitigate this issue, traders often look for confluence with other indicators or patterns that might confirm or refute the signal provided by the bands. For instance, if a price breaks through the upper band but is accompanied by a low Relative Strength Index (RSI), one might think twice before acting solely on the Bollinger signal.
Dependence on Market Conditions
Another limitation of Bollinger Bands is their heavy dependence on market conditions. In calm, trending markets, they can be rather effective at predicting price movements. However, in highly volatile or sideways trading environments, they can turn into unreliable indicators.
During periods of high volatility, the bands can widen significantly, which might create an illusion of strong movement or trend. While this sounds good in theory, in practice, it can cloud your judgement. Swinging prices can hit the bands frequently, generating numerous false signals and making it hard to establish a clear trading strategy.
In contrast, in a sideways or flatter market, the bands may 'squeeze' together. This scenario can often lead to sudden breakouts, creating confusion around whether a trader should buy or sell. Being caught in these transitions can lead to suboptimal trading decisions.
To counter this dependence, it’s recommended to assess the overall market trend and conditions before relying on Bollinger Bands for decision-making. Recognizing how the bands function in the backdrop of both extreme movements and calmer sessions will better equip you to utilize this tool. Traders could take notes on market conditions, perhaps referencing tools that analyze volatility such as the Average True Range (ATR).
Investing time in understanding the broader market landscape will sharpen your Bollinger Band strategy. Key takeaways include:
- Stay Alert: Don't act in haste when the bands generate signals; check what else is happening in the market.
- Diversify Your Indicators: Use Bollinger Bands as one of several tools in your trading toolbox, supported by essential indicators like the ATR, MACD, or RSI.
- Practice Patience: Wait for confirmations from multiple sources before making a trading decision based solely on the bands.
In summary, while Bollinger Bands are powerful and insightful, they are not foolproof. Recognizing these limitations and mitigating risks through informed strategies is essential for trading success.
For further reading on Bollinger Bands and market analysis, check out resources at Investopedia, Wikipedia, and Nerdwallet for more insights.
Practical Applications in Trading Strategies
Bollinger Bands offer a multifaceted approach to trading strategies, combining the basic principles of market analysis with real-time data interpretation. Understanding how to situate these bands within one's trading plan is crucial for harnessing their full potential. Traders can gain insights into market volatility, price action, and possible entry or exit points. Knowing these applications can differentiate traders who merely react to market movements from those who proactively anticipate trends.
In the realm of trading, recognizing opportunities and minimizing risks goes hand in hand with strategy development. Bollinger Bands can help with both, especially in increasingly volatile conditions. When used correctly, they act not just as a signaling device but also as a tool for confirmation, allowing traders to make informed decisions.
Developing a Trading Plan Using Bollinger Bands
When embedding Bollinger Bands into a trading plan, the first step is to clearly define one’s trading goals. Whether it’s short-term gains or long-term positioning, clarity is key. A simple trading plan utilizing Bollinger Bands might include:
- Knowing when to enter the market based on price touching the lower band, signaling a potential bounce.
- Setting up exit points when the price hits the upper band, where overbought conditions may signal a reversal.
- Incorporating stop-losses at strategic points; this can prevent significant losses if the market moves unexpectedly.
Bollinger Bands not only help define those levels, but they also give a trader a framework to understand wider market conditions. It’s essential to review these aspects continuously, adjusting the plan based on market behavior as momentum shifts.
Combining Bollinger Bands with Other Indicators
To create a more robust trading strategy, combining Bollinger Bands with other indicators can enhance decision-making and improve accuracy.
Relative Strength Index (RSI)
The Relative Strength Index, commonly known as RSI, is particularly renowned for its effectiveness in identifying overbought or oversold conditions. In this context, it's valuable for confirming signals generated by Bollinger Bands. When the RSI moves above 70, and the price touches the upper Bollinger Band, it signals an overbought condition, suggesting a possible price drop. Conversely, when the RSI dips below 30 and the price hits the lower band, it indicates an oversold condition, hinting at a potential rebound.
One key characteristic of RSI is its simplicity; traders find it easy to integrate into their analysis. While RSI excels at showing momentum shifts, it's important to also take note of possible divergence between the RSI and price, as this can serve as an early indicator of a potential trend change. However, it does suffer from false signals in choppy markets, making it always wise to use it alongside Bollinger Bands.
Moving Average Convergence Divergence (MACD)
Moving Average Convergence Divergence, or MACD, is another tool that pairs well with Bollinger Bands. This oscillator tracks the relationship between two moving averages and is adept at signaling momentum and trend direction. For instance, if MACD crosses above the signal line while the price touches the upper band, this could confirm overbought conditions.
The beauty of MACD lies in its dual function as both an indicator of momentum and a trend identifier. However, traders must be careful; in prolonged trending markets, the MACD can lag, potentially leading to late entries or exits. Hence, while MACD is generally a reliable tool, it's wise to corroborate its signals with the insights provided by Bollinger Bands.
By combining Bollinger Bands with indicators like RSI and MACD, traders create a better framework for decision-making and risk management.
Case Studies: Real-world Examples
Examining case studies brings Bollinger Bands to life, showcasing their practical applications in various trading scenarios. These real-world examples serve as a bridge between theory and practice, illuminating how traders utilize the bands in their decision-making process. Additionally, investigating different instances can expose both strengths and weaknesses intrinsic to this analytical tool, offering insights that can greatly assist in developing one's trading strategies.
Historical Market Analysis
Looking at historical market movements can provide valuable lessons on the effectiveness of Bollinger Bands. For instance, during the financial crisis in 2008, many traders closely monitored these bands as stock prices plummeted. When the upper band began to flatten and the lower band widened, it signaled increasing volatility, hinting at potential price rebounds. Traders who were attentive to these signals could position themselves favorably for the subsequent market recovery.
Another key example comes from the stock performance of Apple Inc. in 2015. In mid-June of that year, the price dipped towards the lower band, and some investors recognized this as a buy signal, anticipating a bounce back. As predicted, the stock rebounded sharply over the ensuing weeks, allowing traders who capitalized on this signal to realize substantial gains.
"Analyzing historical data helps traders grasp how Bollinger Bands function in different market conditions, setting a foundation for effective trading strategies."
These historical insights not only reflect the past, but also provide valuable context for understanding current market behaviors, reinforcing why case studies matter.
Bollinger Bands in Cryptocurrencies
The landscape of cryptocurrencies has introduced unique dynamics that affect trading strategies, making Bollinger Bands particularly relevant. Take Bitcoin, for example, whose price movements have become increasingly volatile since its inception. In early 2021, Bitcoin experienced rapid price changes, with significant surges and declines observed almost daily. Here, the Bollinger Bands expanded dramatically, indicating heightened volatility and uncertainty in the market.
During April 2021, Bitcoin price climbed near its upper band, prompting many savvy investors to prepare for a potential correction. When the price retreated back towards the moving average, frequent observers could see how the bands tightened, signifying a phase of consolidation. This period allowed traders to reassess market conditions and make educated decisions.
Moreover, some crypto traders successfully combined Bollinger Bands with volume indicators to find entry and exit points. For example, when trading Ethereum in the same timeframe, strong buying volume accompanied signals from the Bollinger Bands that hinted at upward trends. Recognizing these patterns offered traders an avenue to enhance their profitability amid the ups and downs of the crypto market.
By understanding how Bollinger Bands play out in cryptocurrencies, traders can better navigate this unpredictable market landscape. This not only implies a strategic edge but also fosters a more nuanced comprehension of technical analysis in trading.
Closure
When wrapping up the discourse on Bollinger Bands, it’s essential to reflect on their importance as a versatile tool in technical analysis. The insights provided throughout this article highlight several key elements that make Bollinger Bands a relevant instrument for traders of all stripes. First and foremost, they aid in understanding market volatility. A trader can gauge whether the market is active or lethargic based on how tightly or widely the bands are spaced. This knowledge can lead to informed decisions regarding when to enter or exit trades.
Moreover, Bollinger Bands are not just about spotting volatility; they also serve as a foundation for many trading strategies. In the real world, traders often leverage these bands to detect price action signals, such as bounces or breakouts. Recognizing these patterns ahead of time offers a significant advantage, which can convert into financial gain. Thus, incorporating this tool into day-to-day trading plans can enhance one's ability to navigate market shifts effectively.
Another crucial consideration revolves around the limitations discussed earlier. Traders ought to maintain a critical eye, understanding that Bollinger Bands are not foolproof. They can produce false signals, especially in choppy markets, and being overly reliant on them without cross-verifying with other indicators may lead one astray.
In essence, the culmination of the information presented illuminates the balanced view necessary for anyone wishing to utilize Bollinger Bands effectively. Approaching this tool with an understanding of its strengths and weaknesses ultimately equips traders to make wise decisions grounded in sound analysis.
Recap of Key Points
- Components: Bollinger Bands consist of a middle band (simple moving average), an upper band, and a lower band.
- Volatility Measurement: They serve as indicators of market volatility, compressing during low volatility and expanding in high volatility periods.
- Signals: Price action signals, including bounces, breakouts, and trend identification, can be interpreted using these bands.
- Limitations: Awareness of potential false signals and market dependency is crucial for effective use of Bollinger Bands.
Advice for Further Learning
For those looking to deepen their understanding of Bollinger Bands, several resources provide excellent insights:
- Books and Courses: Consider exploring books by John Bollinger himself, as well as online courses focused on technical analysis. This will give a historical perspective and practical insights.
- Online Communities: Websites such as reddit.com can be a treasure trove of advice from other traders. Engaging with communities focused on trading strategies can broaden your perspective.
- Demo Accounts: Utilizing a demo trading account allows you to practice using Bollinger Bands without risking real money. This belays any initial fears and builds confidence.
- Further Reading: Keep yourself updated with articles and publications at reputable educational sites and finance blogs, for instance, britannica.com or investopedia.com for further in-depth studies.
Utilizing these platforms will enrich your understanding and help to apply what you’ve learned about Bollinger Bands in a practical setting.
