A moving average with bands plotted a set number of standard deviations above and below it.
Last verified 13 September 2026 · written by the DexLadder team
What it means
A moving average with bands plotted a set number of standard deviations above and below it.
Why it matters when you trade
The bands are a volatility envelope, not a boundary. Price touching the upper band is not a sell signal; in a trend it is what trending looks like. The genuinely useful reading is the squeeze: bands contracting means realised volatility has collapsed, and compressed volatility tends to resolve into expansion — though the bands say nothing about which way.
Worked example
Bandwidth falls to a six-month low; three days later price expands violently. The squeeze timed the move, not its direction.
See it on live markets
DexLadder runs bollinger bands against live market and pool data, with simulated capital, so you can watch it act on an order instead of reading about it — no account, no wallet, nothing installed.