A band two standard deviations around the 20-day average. Price hugging the upper band is strong but stretched; piercing the lower band often marks washouts.
How to read it
Walking the upper band = strong but stretched trend. Bands squeezing tight = volatility compressed, a big move (either way) often follows.
Limits
The bands say nothing about WHICH way a squeeze resolves.
Related terms
See it on a chart (Overview)All terms
Definitions describe how Easy Sahm computes and reads each figure. Analysis, not financial advice.