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Bollinger Bands is a technical analysis tool used by traders to measure market volatility and compare current price levels with prior ranges in which prices have traded.
The chart below illustrates that during periods of reduced market fluctuations, the bands narrow and move closer together.
In contrast, during times of heightened market volatility, the bands widen and spread further apart.

It may be simpler to look at Bollinger bands as a form of support and resistance.
Bollinger bands show that when the price moves within the band, it usually returns to the middle. This is called the Bollinger Bounce.
Often, the bands can be seen to “squeeze” together, as seen above.
Many traders view a band squeeze as a sign of a pending breakout in the market. If the graph is seen to move towards the upper band, an upwards trend is usually expected, and vice versa.
It is not a frequently occurring event to see a Bollinger squeeze.
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