Bollinger Bandwidth
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Bollinger Bandwidth straightforwardly measures the width of Bollinger Band. It can be served as a proxy of market volatility. When price volatility rises, the distance between the upper and lower bands will widen. Conversely, during a period of low market volatility, the distance between the two bands will contract.

Although volatility doesn’t indicate the trend or direction, the bottom formation of Bollinger band width is often considered a leading sign of possible breakout in price.



Parameters

PARAMETERDESCRIPTION
Bollinger band periodn period of moving average
Deviation numbern deviation to add or subtract from moving average