# Bollinger Bands

*Trading & Technical Analysis — Finicade finance glossary*

Bollinger Bands plot a moving average with bands two standard deviations above and below, so they widen in volatile markets and contract in calm ones. Roughly 95% of price action falls inside them by construction, which means touching a band is normal rather than extreme. The squeeze — bands contracting sharply — is the most-used signal, read as compression before an expansion in volatility.

**Also known as:** bollinger band, volatility bands

**Related terms:** [Standard Deviation](https://finicade.com/glossary/standard-deviation), [Volatility](https://finicade.com/glossary/volatility), [Moving Average](https://finicade.com/glossary/moving-average), [Overbought and Oversold](https://finicade.com/glossary/overbought-and-oversold), [Breakout](https://finicade.com/glossary/breakout)

Source: https://finicade.com/glossary/bollinger-bands