Question: Is Bollinger Bands an important indicator?

Question: Is Bollinger Bands an important indicator?

Answer

Yes. It is used by professional traders and often appears in Wall Street analyst reports.

The indicator allows you to evaluate market volatility, as well as monitor overbought and oversold zones. The middle SMA line can indicate the direction of the current trend, and its slope can be used to judge the strength of the trend. So Bollinger Bands is a multifunctional indicator that traders need to know.