When the Bollinger Bands exhibit narrow standard deviation it is usually a time of consolidation, and can be a signal that a breakout might be coming as people are adjusting their positions for a new move. Also, the longer the prices stay within narrow bands the greater is the chance of a breakout.
Bollinger Bands that are unusually far apart can serve as a signal that a reverse in trend may be approaching. Notice how in mid-November on figure 4, the bands get very wide as a result of high volatility on the down swing. The trend reverses as prices reach an extreme level according to statistics and the theory of normal distribution.
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