Bollinger Band Width
The distance between the upper and lower Bollinger Bands, expressed relative to the middle band.
Formula
Band Width = (Upper Band - Lower Band) / Middle Band x 100
Unit
%
In depth
Band width isolates the volatility content of Bollinger Bands and strips out the price level, which makes it comparable over time and between securities. Very low readings are called a squeeze and are read as compressed volatility, which is a description with real statistical support — volatility does cluster and mean-revert. What a squeeze does not indicate is direction, and treating it as a directional signal is the common error. This entry describes the measure; it makes no claim about which way an expansion will resolve.
Worked example
Bands at ₹524 and ₹476 around a middle of ₹500 give a width of 48 / 500 x 100 = 9.6%. A reading of 3.2%, the lowest in a year, would be called a squeeze — a statement about volatility, not about direction.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Bollinger Band Width” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.