Based on SMA, these consist of three bands: the middle band being an n-period simple moving average (SMA), the upper band being the SMA plus x times an n-period standard deviation, and the lower band being the SMA minus x times an n-period standard deviation. It's used to identify overbought and oversold conditions in a financial instrument.
Based on SMA, these consist of three bands: the middle band being an n-period simple moving average (SMA), the upper band being the SMA plus x times an n-period standard deviation, and the lower band being the SMA minus x times an n-period standard deviation. It's used to identify overbought and oversold conditions in a financial instrument.