IndicatorsIntermediate
Bollinger Bands
A moving average with bands two standard deviations above and below.
- What it means
- Bands widen when volatility rises and narrow when it falls.
- What to watch
- A band squeeze, often followed by a strong move.
- How Compass Alpha uses it
- Feeds the volatility-squeeze detection.
More in Indicators
Moving averages
The average closing price over a set number of days, drawn as a smooth line (for example 20 or 50 days).
RSI (Relative Strength Index)
A 0 to 100 measure of how strong recent gains are compared with recent losses.
MACD
Moving Average Convergence Divergence: the gap between a fast and a slow average, with a signal line.