Bollinger Band Width is a volatility indicator derived from Bollinger Bands. Non-normalized band width measures the difference between the upper band and the lower band. Band width decreases as Bollinger Bands narrow and increases as Bollinger Bands widen. Because Bollinger Bands are based on the standard deviation, falling Bandwidth reflects decreasing volatility and rising Bandwidth reflects increasing volatility.
Modified on: Tue, 8 Nov, 2016 at 11:10 AM
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