How Traders Use Bollinger Bands®

In the 1980’s, John Bollinger developed Bollinger Bands®. Since then, they have become a popular technical analysis tool used by traders world-wide. Similar to Keltner or Donchian channels, Bollinger Bands® plot over the price action of a chart as a set of lines forming an envelope. Outside of trading, Bollinger Bands® have even been applied to manufacturing data to detect defects in pattern fabrics, as well as helping identify the start and end of the winter surge for pediatric intensive care in medicine.