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Bollinger bands
Developed by John Bollinger, it's system based on the premise that prices revert to their mean. The standard deviation of the moves away from the mean are used to form two bands around the price. Whenever the price breaks below or above the band, it is deemed too extreme a move and therefore liable to correct back from the standard deviation towards the mean of the price.
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- Part of Speech: noun
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- Industry/Domain: Energy
- Category: Energy trade
- Company: Platts
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