John Bollinger & the Origin of Bollinger Bands
Behind one of the most widely used indicators in modern trading stands John Bollinger, a financial analyst and technical trader who revolutionized the way we look at volatility.
This post dives into who John Bollinger is, why he created the Bollinger Bands, and how the tool became essential for traders around the world.
Who Is John Bollinger?
John Bollinger is a Chartered Market Technician (CMT) and founder of Bollinger Capital Management. With a background in film and finance, he combined analytical precision with creative thinking to build innovative tools for traders.
The Creation of Bollinger Bands
In the early 1980s, Bollinger was looking for a better way to:
- Measure market volatility
- Spot relative price highs and lows
- Create a dynamic trading envelope that adjusted to changing conditions
Most indicators at the time used fixed bands or channels. Bollinger wanted something more adaptive.
The Innovation: Bands That React
Instead of static zones, he introduced:
- A 20-period Simple Moving Average (SMA) as the middle band
- Bands placed 2 standard deviations above and below the SMA
- This allowed the bands to expand and contract based on price volatility
“Bollinger Bands are designed to answer the question: Are prices high or low on a relative basis?”
— John Bollinger
Evolution & Impact
- Bollinger Bands became widely accepted across stocks, forex, crypto, and futures
- Incorporated in almost every major charting platform
- Used in reversal, breakout, and trend-following strategies
- Inspired spin-off indicators like %B and BandWidth
In 2001, John Bollinger published the book “Bollinger on Bollinger Bands”, explaining the logic, use cases, and practical applications of his invention.
John Bollinger Today
John remains active in financial education and technical analysis. He shares insights through his website, publications, and industry talks. His contribution continues to influence retail and institutional traders globally.
✅ FAQs
Q1: When were Bollinger Bands invented?
They were developed by John Bollinger in the early 1980s.
Q2: Why did Bollinger create them?
He wanted a dynamic indicator that adjusted to real-time market volatility, unlike fixed-width channels.
Q3: Is John Bollinger still active?
Yes. He continues to write, speak, and contribute to the field of technical analysis.
Q4: What is his book called?
“Bollinger on Bollinger Bands” – it’s considered a must-read for serious traders.
Q5: What’s the main legacy of Bollinger Bands?
A universally adopted indicator that blends volatility, trend, and reversal detection into one tool.
