Bollinger Bands

Bollinger Bands are three lines on a price chart that show where a stock's price typically trades. The middle line is a moving average (the stock's average price over the last 20 days), and two outer bands sit above and below it, measuring how much the price usually bounces around. You'll see these bands in most charting tools, and traders watch them because they can signal when a stock might be overbought (price too high, near the upper band) or oversold (price too low, near the lower band). For example, if TechCorp stock suddenly shoots up and touches the upper band, some traders see that as a sign the price might pull back down soon. They're not a crystal ball, but they help traders spot potential turning points.