VOLATILITY INDICATOR
Bollinger Bands
Frames an average with bands based on recent standard deviation.
Start with the input, not the story.
Price dispersion around a moving average.
Plain-language formula
Middle SMA plus and minus a chosen multiple of rolling standard deviation.
Platform implementations can differ in price input, smoothing, indexing and rounding. Record the exact settings and provider before comparing results.
03 / USEFUL REGIME
Where it may help
Volatility compression, expansion and range research.
04 / WEAK REGIME
Where it struggles
Strong trends, where price can walk a band rather than reverse.
Add a different measurement.
RSIADX / DMIBandwidth
A complementary tool should answer a different question, such as volatility, regime or position risk. Test the base rule before testing the combination.
The shortcut to avoid
Fading every outer-band touch.
A testable next step
Define squeeze, close and re-entry rules precisely; compare trend-filtered and unfiltered samples.