The chart shared is a good example of how Bollinger Bands help in identifying a sideways (range-bound) market: Narrow Bands (Low Volatility) – When the Bollinger Bands contract and stay relatively flat, it indicates the market is moving sideways with low volatility. 🔹 In chart, the arrows highlight such phases where price is consolidating within a tight range. Price Staying Between Bands – During sideways markets, prices often oscillate between the upper and lower bands without breaking out strongly in either direction. 🔹 That’s what’s happening in the middle section of your chart. Breakout Signals – When the bands expand after contraction, it usually signals the start of a trending move (either up or down). 🔹 You can see that clearly after August in the chart where prices break out and an uptrend begins. so, the key takeaway: Sideways Market = Bollinger Bands narrow & horizontal, prices bouncing within the bands. Trending Market = Bands expand, price breaks out from consolidation.