What are target bands?

<p id="isPasted">Target bands, in various contexts, define a range of acceptable performance or results. They can be used in areas like financial analysis, business strategy, or even in the context of inflation targets set by central banks.</p><p>In financial analysis, particularly using technical analysis tools like Bollinger Bands, target bands represent price ranges around a moving average, indicating potential support and resistance levels. For example, an upper band might signal an area where the price is likely to be oversold, and a lower band might signal an area where the price is likely to be oversold.&nbsp;</p><p>In business and project management, target bands can be used to define acceptable performance levels for key metrics. For example, a target band for equipment utilization might be defined as "good" for 80-95% and "okay" for 65-80%.&nbsp;</p><p>In economics, central banks often set inflation targets that include a tolerance band. This means the target is not a fixed number but rather a range within which the central bank aims to keep inflation.&nbsp;</p>