Bollinger Band Width
Original schematic showing the guide's principal visual relationships.
Band Width = (Upper Band − Lower Band) ÷ Middle Band × 100.
Formula and components
A normalized measure of the distance between the upper and lower Bollinger Bands.
Band Width = (Upper Band − Lower Band) ÷ Middle Band × 100.
How it works
The indicator transforms price, range, or volume observations over a selected lookback. Shorter settings react faster but create more noise; longer settings respond more slowly and emphasize the underlying regime. Always compare the reading with price structure and timeframe.
How to read it
Historically low width highlights volatility compression; rapid expansion shows a move is underway but does not identify its direction.
Practical example
Bandwidth falling toward the low end of its one-year range identifies a volatility squeeze. A subsequent expansion confirms that volatility has returned, but price—not bandwidth—must determine direction.
Confirmation checklist
Compare the current range with its own history and distinguish expansion from direction. Volatility can increase during both advances and declines.
Limitations and false signals
A squeeze can persist and expansion can begin with a false break. Direction must come from price or another indicator.
Limitations and false signals
Frequently asked questions
What does this pattern or indicator describe?
A normalized measure of the distance between the upper and lower Bollinger Bands.
How should the signal be confirmed?
Historically low width highlights volatility compression; rapid expansion shows a move is underway but does not identify its direction. Compare the current range with its own history and distinguish expansion from direction. Volatility can increase during both advances and declines.
What can cause a false signal?
A squeeze can persist and expansion can begin with a false break. Direction must come from price or another indicator.