Usage of Bollinger Bands

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Bollinger Bands indicator consist of three lines plotted on a stock chart: a simple moving average in the middle and two standard deviation lines plotted above and below the moving average. The distance between the moving average and the standard deviation lines represents the deviation. A deviation of 1 standard deviation means that the distance between the moving average and the standard deviation lines is equal to one standard deviation of the stock's price movements. A deviation of 2 standard deviations means that the distance is equal to two standard deviations of the stock's price movements.

In scalping strategies, a deviation of 1 or 2 standard deviations is often used because it provides a tight range around the stock's price movements, making it easier to identify overbought or oversold conditions. If a stock's price moves outside of the Bollinger Bands, it may indicate an overbought or oversold condition and a potential reversal in the stock's price.

I don't understand 😂😂😝

I apologize if my previous response was unclear. Let me explain Bollinger Bands in a simpler way.

Bollinger Bands are a type of technical indicator used in stock market trading to help traders identify potential buy and sell opportunities. They consist of three lines:

A moving average line, which represents the average price of a stock over a certain period of time.

An upper band, which is plotted a certain number of standard deviations above the moving average line.

A lower band, which is plotted a certain number of standard deviations below the moving average line.
The distance between the moving average line and the upper and lower bands is determined by the standard deviation, which is a statistical measure of how much a stock's price can deviate from its average price.

If the price of a stock moves outside of the upper or lower band, it can indicate that the stock is overbought or oversold. When the stock is overbought, it may be a good time to sell. When the stock is oversold, it may be a good time to buy.
In the context of scalping strategies, a deviation of 1 or 2 standard deviations is often used because it provides a relatively tight range around the moving average line. This makes it easier to identify overbought or oversold conditions and to make quick trades based on these conditions.

So, if the Candle Sticks go outside the Bollinger frame range, means what?

If a stock's price moves outside of the Bollinger Bands (i.e., the price moves beyond either the upper or lower band), it can indicate a potential change in the stock's price trend. When the stock's price moves outside of the upper band, it may indicate that the stock is overbought and that the price may be due for a correction. Conversely, when the stock's price moves outside of the lower band, it may indicate that the stock is oversold and that the price may be due for a bounce.

It's important to note that while Bollinger Bands can provide valuable information, they are not a guarantee of future price movements and should be used in conjunction with other technical and fundamental analysis tools. Additionally, different traders may have different interpretations of what a stock's price moving outside of the Bollinger Bands means, and it's important to carefully consider your own trading style and risk tolerance when making investment decisions.

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