# BB band definition

By [Trading Tips](https://paragraph.com/@trading-tips) · 2021-10-09

---

A Bollinger Band® is a technical analysis tool defined by a set of trendlines plotted two [standard deviations](https://www.investopedia.com/terms/s/standarddeviation.asp) (positively and negatively) away from a [simple moving average](https://www.investopedia.com/terms/s/sma.asp) (SMA) of a security's price, but which can be adjusted to user preferences.

Bollinger Bands® were developed and copyrighted by famous technical trader John Bollinger, designed to discover opportunities that give investors a higher probability of properly identifying when an asset is oversold or overbought.1

---

*Originally published on [Trading Tips](https://paragraph.com/@trading-tips/bb-band-definition)*