Bollinger Bands & ATR

Two ways to measure volatility: bands that stretch and squeeze around price, and the average true range that tells you how far a stock typically moves in a day.

Why volatility matters

Volatility is how much a price tends to move. It affects everything: how wide your stop should be, how many shares you can buy, and how quickly a trade can go for or against you. Bollinger Bands and the average true range (ATR) are two of the most popular ways to measure it.

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