Bollinger Bands
A moving average wrapped in bands set a number of standard deviations away — they widen in volatile markets and squeeze tight in quiet ones.
Bollinger Bands plot a 20-period average with an upper and lower band typically two standard deviations out. Price tends to spend most of its time inside the bands; tags of the outer band mark statistically stretched moves.
A 'squeeze' — the bands pinching tight — signals a volatility contraction that often precedes a sharp expansion move. The direction of the eventual breakout, not the squeeze itself, is what traders act on.
On StockSetups
StockSetups tracks the Bollinger/TTM squeeze on every signal — including how many days it's been squeezing and a directional momentum histogram — so coiling names are easy to surface before they fire.
Scan the whole market free →Related terms
Get daily signals & real-time alerts.
StockSetups scans ~12,300 US stocks & ETFs after every close and sorts every long setup into four ranked lanes — each with a trade plan — plus an always-on engine firing 35+ real-time intraday alerts. Free for 14 days, cancel in one click.
Start free — 14-day full access →