Bollinger Band Width (20, 2σ)Volatility

Timeframe M1 · unit %

What it measures

The distance between the upper and lower Bollinger Bands expressed as a percentage of the middle band. Quantifies the current spread of the statistical envelope.

How Janira reads it (bullish vs bearish)

Low width (~0.5-1%) signals band contraction (the 'squeeze'): price has been moving in a tight range and statistical volatility is compressed. High width signals expansion: the market has been making large moves. Width itself has no directional implication.

In plain language

Imagine the Bollinger Band as a breathing organism. When it inhales (narrow width), it's holding its breath - compressed, quiet. When it exhales (wide width), it's been making big moves. The breath pattern tells you about energy, not direction.

Scenarios

• Width contracting to multi-week lows (squeeze): statistical volatility is at a minimum; the release from squeeze often produces a sustained directional move, but the squeeze itself doesn't say which way.
• Width expanding rapidly: the market has just started making larger bars. Trending conditions tend to produce sustained width expansion.
• Width at elevated plateau: high volatility regime. Both winning and losing moves are larger; risk management systems need to account for wider swings.
• Width contracting after a spike: volatility mean-reverting following an event-driven expansion. The market is digesting the move.

More volatility indicators

Janira computes Bollinger Band Width (20, 2σ) deterministically from live price action, the same way for every reading - no discretion, no hidden weighting. This page explains the method; it is not a live reading and not advice.