Bollinger Bands

A moving average with elastic rails that widen when the price gets volatile.

Three lines: a 20-day moving average in the middle, and an upper and lower band placed two standard deviations away. Because standard deviation measures how spread out recent prices have been, the bands widen in turbulent markets and squeeze together in calm ones.

Statistically, price spends most of its time inside the bands. Touching the upper band means the move is large relative to the stock's own recent behaviour — which is different from saying it is expensive.

A squeeze — bands drawing very close — signals unusually quiet trading. That often precedes a large move, though the bands say nothing about which way it will break.

Middle band ₹2,100, upper ₹2,400, lower ₹1,800. At ₹2,390 the price is near the top of its normal range; the ₹600 width tells you this stock routinely swings a lot.

Riding the upper band is common in a strong uptrend and is not a sell signal. The bands describe the *distribution* of recent prices, nothing more.

Analysis only: Supath AI does not give investment advice. Consult a SEBI-registered financial advisor before making investment decisions.