What is Bollinger Bands?
Bollinger Bands
What is Bollinger Bands?. Bollinger Bands (BB) are the common chart indicators which is used to recognize the strength/volume of volatile market. Commonly, Bollinger Bands will tell us whether a forex trading market is quite or crowded. When the market is quite, BB is narrowing. Meanwhile, when the market is crowded, BB will be widening. Meanwhile, when the forex trading market is crowded, BB will be widening.
(we will upload the picture soon)
If you want to know the history, formula, and all kinds about Bollinger Bands, you can read them in bollingerbands.com
The Classic Bollinger Bounce
(we will upload the picture soon)
One of the Bollinger Bands Technical Analysis is classic bollinger bounce. The first thing that you need to know about Bollinger Bands is that the price movement has a tendency to go back to the middle (middle of BB). From this understanding, you can take the right position to get profit. From the picture above, you can predict where the next price movement will go.
(we will upload the picture soon)
If your answer is ‘down’, then it is right. The price movement will and is going down towards the middle line of BB.
What will you just learned is called Classic Bollinger Bounce. The reason of ‘bounce’ is because Bollinger bands is like a mini support and resistance. The bigger time frame that you use, the bigger range of the BB. Bollinger Bands is often used by forex traders who take advantage of swing condition (85% of the whole time) to get profit.
Bollinger Squeeze
Another Bollinger Bands Technical Analysis is Bollinger Squeeze. The meaning of Squeeze is shrinking. If the Bollinger Bands is started to shrink, it is likely to be a breakout. In a ‘squeeze’ condition, if a candlestick is going upward and passing the upper Bollinger Bands line, a breakout will happen and going upwards.
If a candlestick started to go to downward and pass the below BB line, a breakout will happen and go downward.
In the following pictures, the BB is shrinking and the candlestick is going upwards.
(we will upload the picture soon)
Thank you for visiting our blog Learn Forex Trade ..
Read More about Technical Analysis:
Bookmark/share this article with others:What is Bollinger Bands?. Bollinger Bands (BB) are the common chart indicators which is used to recognize the strength/volume of volatile market. Commonly, Bollinger Bands will tell us whether a forex trading market is quite or crowded. When the market is quite, BB is narrowing. Meanwhile, when the market is crowded, BB will be widening. Meanwhile, when the forex trading market is crowded, BB will be widening.
(we will upload the picture soon)
If you want to know the history, formula, and all kinds about Bollinger Bands, you can read them in bollingerbands.com
The Classic Bollinger Bounce
(we will upload the picture soon)
One of the Bollinger Bands Technical Analysis is classic bollinger bounce. The first thing that you need to know about Bollinger Bands is that the price movement has a tendency to go back to the middle (middle of BB). From this understanding, you can take the right position to get profit. From the picture above, you can predict where the next price movement will go.
(we will upload the picture soon)
If your answer is ‘down’, then it is right. The price movement will and is going down towards the middle line of BB.
What will you just learned is called Classic Bollinger Bounce. The reason of ‘bounce’ is because Bollinger bands is like a mini support and resistance. The bigger time frame that you use, the bigger range of the BB. Bollinger Bands is often used by forex traders who take advantage of swing condition (85% of the whole time) to get profit.
Bollinger Squeeze
Another Bollinger Bands Technical Analysis is Bollinger Squeeze. The meaning of Squeeze is shrinking. If the Bollinger Bands is started to shrink, it is likely to be a breakout. In a ‘squeeze’ condition, if a candlestick is going upward and passing the upper Bollinger Bands line, a breakout will happen and going upwards.
If a candlestick started to go to downward and pass the below BB line, a breakout will happen and go downward.
In the following pictures, the BB is shrinking and the candlestick is going upwards.
(we will upload the picture soon)
Thank you for visiting our blog Learn Forex Trade ..
Read More about Technical Analysis:
- Technical Analysis in Forex Trading
- Forex Trading Charts
- Japanese Candlestick Patterns
- Forex Pattern Recognition
- Hammer and Hanging Man Patterns
- Support and Resistance Indicator
- Forex Trendline Indicator
- Forex Channel Indicator
- Fibonnaci Squence Golden Ratio
- Understanding Fibonacci Squence
- Fibonacci Retracement
- Moving Average Method
- Which are is better between SMA and EMA?
- Forex Trading Common Indicators
- What is MACD?
- What is Parabolic SAR?
- What is Stochastic Oscillator?
