Bollinger Bands consist of a middle SMA(20) with upper and lower bands at ±2 standard deviations. Bands widen during high volatility and narrow during consolidation (squeeze).
Parameters (20/2)
X-Axis: Time (candle intervals)
Y-Axis: Price (auto-scaled)
Upper: SMA + 2×StdDev (solid)
Middle: SMA(20) (dashed)
Lower: SMA − 2×StdDev (solid)
Interpretation
Overbought: Price touches upper band
Oversold: Price touches lower band
Squeeze: Narrow bands = low volatility
Trading Signals
Band squeeze → expect breakout
W-bottom at lower band = bullish
M-top at upper band = bearish
Price Overlay
Close Price: Actual closing price (same Y-axis, dashed violet)