when the bands widen this signals an increase in volatility because the standard deviation of the price increases thus the price moves are more significant than in the recent past 1
economic announcements earnings reports geopolitical events or sudden shifts in market sentiment can be behind these changes traders see increased volatility as an opportunity for substantial gains and a risk of greater losses 9the widening of the bands could signal the beginning of a substantial price trend as volatility increases the chance of a significant and sustained price move in one direction also increases however you should confirm this with other indicators or price patterns before proceeding 