Bollinger Bands Indicator Measure The trend Forex

Bollinger bands include the development of courses within an envelope used to both support and resistance, an indicator of trend and volatility.
The standard deviation Bollinger bands is calculated based on market volatility. More courses vary, faster bands differ.

According to John Bollinger, the only use of this system does not generate strong position and should be used with other technical indicators.

Defaults

- A simple moving average 20 days

- High Band = moving average 20 days + 2 standard deviations to 20 days of average

- Low Band = moving average 20 days - 2 standard deviations to 20 days of average
Use of Bollinger Bands

- Identify a change in trend

The price changes tend to occur after a narrowing of the bands.


Bollinger Bands

- Measure the Force of a trend

The greater the gap between the lower band and upper band, the greater the tendency is strong. Lessons emerging bands give a strong signal of continued trend.


Bollinger Bands

- Playing round trips between bands

Tapes can be used as support and resistance. After touching a band, classes tend to want to go touch the opposite band. This technique may be useful in a market without trend and when the bands are parallel.