Bollinger Bands
Bollinger Bands consist of a moving average and upper and lower bands placed a chosen number of standard deviations away from it. The bands widen as measured price variability increases and narrow as it decreases; touching a band does not by itself establish a reversal or breakout.
With a hypothetical moving average of 100, standard deviation of 3, and multiplier of 2, the upper band is 106 and the lower band is 94.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure