Please feel free to bookmark our Home Page for information and tutorials relating to daytrading. Our Daytraders Handbook goes into more depth and detail on the strategies using technical analysis and charts for daytrading. Trading bands are lines drawn at a fixed range around a moving average. Bollinger bands are bands that vary in distance from the moving average based on volatility. You can see that the bands widen during volatile trading ranges and narrow during sideways trends.
Sharp moves tend to take place after the bands have tightened.
A move outside the bands usually means a continuation of a trend. Bottoms and Tops made outside the bands followed by bottoms or tops made inside the bands can mean a trend reversal. A move originating at one band tends to go to the other band.