Understand before you act
Bollinger Bands, explained
Bollinger Bands place an upper and lower band around a moving average. The bands widen as recent variation grows and narrow as it contracts.
How Index Screener uses it
20 periods, two standard deviations
The middle band is SMA 20. Upper and lower bands add and subtract two population standard deviations over the same 20 observations.
What it helps you assess
Put a price move in the context of recent volatility.
What it cannot tell you
The bands do not promise a fixed probability of containing future prices. A touch alone is not a buy or sell instruction.
Before an entry or exit
These are learning examples to build your own checklist. They are not tested trading rules or personalized recommendations.
Look for confirmation
First decide whether the market is trending or ranging. A touch can support a continuation or a rebound setup; seek confirmation appropriate to that setup.
Follow your risk plan
Use support, a planned stop and the strategy timeframe to review an exit. A band or the middle line can be a review level, not an assured turning point.
Keep learning
Further reading
References explain the indicators. Site rules and the example checklists above are described by Index Screener.