This calculator works out the upper and lower Bollinger Bands from your moving average, standard deviation, and chosen multiplier, giving you the price levels marking statistically extended moves.
Enter your moving average, standard deviation, and multiplier (typically 2), and the calculator returns the upper and lower bands, closely related to how volatility is actually measured.
This calculator is for educational purposes only. Not financial advice.
The bands are set a fixed number of standard deviations above and below a moving average, typically 2 standard deviations, price touching or exceeding a band suggests it's statistically extended relative to its recent volatility, not necessarily a reversal signal on its own.
A wider multiplier (like 2.5 or 3) captures more extreme moves before flagging them, reducing false signals but reacting later, a narrower multiplier (like 1.5) flags moves sooner but produces more frequent, potentially noisier signals.
A tight squeeze indicates unusually low volatility, often interpreted as a period of consolidation that may precede a significant breakout in either direction, though the direction of that eventual breakout isn't predicted by the squeeze itself.
Not automatically, in strong uptrends, price can ride along or repeatedly touch the upper band for extended periods without reversing, many traders combine Bollinger Bands with other indicators rather than trading a band touch in isolation.
Bollinger Bands specifically translate standard deviation into visual price levels around a moving average, our dedicated Standard Deviation Calculator gives you the raw statistical figure, this calculator applies it directly to price bands for trading context.