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Topical Terminology > Bollinger Bands



1 Definition

Bollinger bands

For Bollinger bands we have a term and definition in Coal Power.



Bollinger Bands (Coal Power)

A system based on the premise that prices revert to their mean. The standard deviation of the moves away from the mean are used to form two bands around the price. Whenever the price breaks below or above the band, it is deemed too extreme a move and therefore liable to correct back from the standard deviation towards the mean of the price.




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