Bollinger Bands are a technical analysis tool that adapts to market volatility, consisting of a central moving average flanked by upper and lower bands typically set two standard deviations apart. When the bands expand, it reflects increasing volatility - often triggered by sharp price movements or breakouts. This expansion can signal the start of a new trend, especially if price breaks out of a previously tight range. Conversely, when the bands contract, it indicates reduced volatility and often precedes a significant price move. This "squeeze" condition is closely watched by traders, as it suggests the market is coiling for a breakout in either direction. While touching the upper or lower band may hint at overbought or oversold conditions, sustained movement along a band - known as "riding the band" - can confirm trend strength. For best results, Bollinger Bands are used alongside momentum indicators or volume analysis to validate breakout direction and avoid false signals.