Bollinger Bands
Definition
A volatility indicator consisting of a middle band (SMA) and upper/lower bands at a specified standard deviation distance. Bands widen during volatile periods and contract during calm ones.
Example
When price touches the lower Bollinger Band, it may indicate the asset is oversold relative to recent volatility.
How Gilito AI Uses It
Bollinger Band width and %B (price position within bands) are used as volatility filters and mean-reversion signals in Gilito strategies.