Bollinger Bands
Bollinger Bands are overlay channels that are drawn using a stock’s Moving Average (MA) and the standard deviation from the Moving Average. They consist of three bands, with the following default settings:
- A middle band (plotted using a stock’s 20-day moving average)
- A lower band (plotted 2 standard deviations below the moving average)
- An upper band (app_node_termplotted 2 standard deviations above the moving average)
The lower and upper bands can be used to identify levels of support and resistance in price.
![2adae31806eb69984b241c6e505ccbe51288c16b1579017206.png](https://images.stockopedia.com/node/2adae31806eb69984b241c6e505ccbe51288c16b1579017206.png)
As with all overlays, the Bollinger Bands default settings can be customised. Simply click the Bollinger Bands link at the top right-hand side of the chart. This will open a modal window where you can make your adjustments.