Volatility & Bandsdraws in its own pane

The Bollinger bands' spread as one number. Historically narrow bandwidth is the squeeze; historically wide marks a climax.

On this chart: 20-period, 2σ, as % of the middle band.

BandWidth plots the distance between the Bollinger bands as a percentage of the middle band — realized close-to-close volatility, normalized so it is comparable across price levels and across time.

Read it against its own history: multi-month lows in bandwidth are John Bollinger's own squeeze definition, and multi-month highs typically print at capitulation or blow-off moments, when movement is at its most extreme. The absolute number matters less than where it sits in this name's range.

BandWidth is realized volatility's chart; implied volatility is the options market's forecast of the same quantity. Reading them together frames the premium seller's core question — what movement is being paid for versus what movement is being delivered. IV elevated while bandwidth is already collapsing is the compressing-aftermath profile; both spiking together is the storm itself.

Like everything in this guide, these are descriptions of conditions and reference levels — context for your own decisions, not instructions to trade.