fbpx

PU Prime App

Exclusive deals on mobile

  • Analysis

28 December 2020,07:34

Analysis

Bollinger Bands

28 December 2020, 07:34

Share on:
FacebookLinkedInTwitterShare

Bollinger bands is an analytical tool used by traders to identify a market’s volatility and looks at the levels of current prices relative to previous trades.

We can see from the above graph that in an instance where there is little volatility the bands contract and as the market becomes increasingly volatile the bands expand.

It may be simpler to look at Bollinger bands as a form of support and resistance.

Often what is seen with Bollinger bands is that as the price deviates within the band it often tends to return back to a middle ground; this is what is known as the Bollinger Bounce.

Often the bands can be seen to “squeeze” together such as in the graph below:

Many traders see a band squeeze as an indication that there is a pending breakout in the market. If the graph is seen to move towards the upper band then an upwards trend is usually expected. The opposite is true when the candlestick is seen to be approaching the lower bound.

An example of a “breakout can be seen below”:

It is not an often occurrence to see a Bollinger squeeze; when looking at a 15 minute candlestick chart it will be experienced only a couple of times a week.

Commencer à trader avec un avantage

Tradez le Forex, les indices, Métaux et plus encore avec des spreads faibles et une exécution ultra-rapide.

  • Commencez à trader avec des dépôts aussi faibles que 50 $ sur nos comptes standard.
  • Accès 24h/24 et 7j/7 à notre service d’assistance.
  • Accédez à des centaines d’instruments, à des outils pédagogiques gratuits et à certaines des meilleures promotions du moment.
Nous rejoindre

Latest Posts

Ouverture de compte rapide et facile

Créer un compte réel
  • 1

    S’inscrire

    Inscrivez-vous pour un compte réel PU Prime grâce à notre procédure simplifiée.

  • 2

    Approvisionner

    Approvisionnez facilement votre compte grâce à un large éventail de canaux et de devises acceptées.

  • 3

    Commencer à trader

    Accédez à des centaines d’instruments avec les meilleures conditions de trading.