Bollinger Bands are probably one of the most famous and used indicator by every trader. It shows a sort of wave (“onda” in Italian) that helps you understand when a price can be considered “high” or “low”.
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As you probably know Bollinger Bands is a technical analysis tool invented by John Bollinger in the 1980s. This volatility indicator is available on the vast majority of trading platforms, including MT4 of course. Bollinger Bands are made up of three lines:
- a moving average in the centre
- an upper band that tries to define when prices can be considered “high”
- a lower band that tries to define when prices can be considered “low”