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  • Writer's pictureEdward Ballsdon

Bollinger Bands flashing some warnings

Updated: May 24


Very tight Bollinger Bands (BB) can be one of the most useful “technical” indicators, warning of the risks of a violent price move when the market receives unexpected “new news”.

This research highlights how certain asset prices in Fixed Income and FX have currently extremely tight BBs, whilst Equity and Commodity prices have wide BBs.

This suggests that “new news” could bring some outsized moves In certain bond markets and FX crosses, whilst equity markets have reacted already to a lot of news is already priced into equity markets, and are more likely to range trade/correct.

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