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Bollinger Bands are used as a technical indicator, that help Retail Traders read stock charts more easily. The Bollinger Bands indicator is a Channel Indicator. Channel Indicators are lines that are drawn by the computer software program, above and below the price on the chart. The difference between Bollinger Bands and other Channel Indicators, is that Bollinger Bands expand and contract with the dimensions of the candlesticks or bar chart price.