Bollinger Bands from Moving Averages and Price Dispersion

Summary

The document introduces Bollinger Bands as a technical indicator calculated from closing prices. It names a moving-average window, another window for the lower band, and a standard-deviation multiplier as inputs. Its pseudocode describes an upper band based on a moving average plus a scaled measure of dispersion, and a lower band based on a moving average minus a standard-deviation measure.

The entry provides no trading rules, chart examples, historical tests, or performance evidence. It also points readers to a separate document for the indicator's meaning, but that explanation is not included here. The different window parameters and the abbreviated dispersion notation leave some implementation details unclear, so the page alone is not enough to reproduce or assess a complete strategy.

Key ideas

• The indicator uses closing prices to calculate upper and lower bands.
• The upper band combines a moving average with a scaled dispersion measure.
• The lower band subtracts a standard-deviation measure from a moving average.
• The entry gives no signal rules or evidence about trading performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.