// TRADING TERMINOLOGY
What is Bollinger Bands?
A technical analysis tool defined by a set of trendlines plotted two standard deviations away from a simple moving average.
In-Depth Explanation
Bollinger Bands expand and contract based on market volatility. When the bands "squeeze," it often precedes a period of high volatility and a potential breakout.
Practical Example
"The price touches the upper Bollinger Band, suggesting it may be temporarily overextended."
Related Terms
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