if you look at a standard bell curve, 2 standard deviations encompass 2/3 of the data, so by definition 2/3 is encompassed inside a 2 standard deviation measure.
The Bollingerbands are designed to encompass 2/3, 2 Standard deviations using a moving average of around the last 20 days. they should stay "outside" both the moving average line and the raw daily data line, 2/3 of the time, by definition.
when the raw daily data doesn't "bounce around" a lot, the moving average line is smoother and the bands tend to constrict, slowly, less volatility in the price action, the market is "calmer" so to speak.
i learned about these around 35-40 years ago when i first started looking at technical analysis of stocks and commodities
it's a black art and not easily understood and i don't claim to understand it but it gives me glimpses
basically the 2 bands are the ones mostly on the outside. i have extremely poor color vision so i'm pretty sure they are 2 different colors
basically the 2 bands are the ones mostly on the outside. i have extremely poor color vision so i'm pretty sure they are 2 different colors
hope this helps
On Feb 19, 2021, at 8:43 PM, Scott N <scottnieto@gmail.com> wrote:
Are the bollinger bands in two different colors?
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