Angie · learn
Bollinger bands
A moving average with bands drawn two standard deviations above and below it. Price at a band is unusual relative to its own recent range, not relative to any other stock.
A fuller explanation of this one is still being written. The definition above is the short answer.
See also
- Z-score — How many standard deviations today's price sits from its recent average. Two sigma below means a move this far down happened on roughly one day in forty.
- Mean reversion — The tendency of a stretched price to drift back toward its own average. Angie measures how often that actually happened for a name rather than assuming it will.
- RSI — A 0 to 100 gauge of how one-sided recent moves have been. Conventionally below 30 is oversold and above 70 overbought, though a strong trend can hold an extreme for weeks.
Educational content, not investment advice. Angie explains how a valuation is built so you can judge it yourself. What you do with that is your call.
