Bolinger band contains three line that is known as upper line middle line and lower line.
Distance between upper line and lower line is calculated by standard deviation.
Middle line is a Simple moving average of 20 (20 SMA)
The price of a stock will be trade within upper line and lower line.
If price of stock breaks the level of upper or lower due to some news or high volatility, it will come back within the range.
You can see in your chart by adding bolinger band, During the low volatility Bolinger band gets tightened and then price of a stock start moving in uptrend or downtrend.
You will get to know about the stock price whether the price is high or low.
You can verify the trend also using Bolinger band, If bolinger band is moving upward with the price, it means stock is in uptrend.
If bolinger band moving downward with the price then it’s called down trend.
Most traders take positions when the price of a stock hits the middle line or lower line in uptrend.
If trend is downward and Bolinger band is also moving downward then you may book your profit on touching middle line or upper line.
