forex:indicators:bollinger_bands
This is an old revision of the document!
Table of Contents
Forex - Indicators - Bollinger Bands
The Bollinger channel boundaries are not fixed and depend on the volatility of a financial instrument.
If there is no clear-cut trend, the price deviates slightly from the midline. As soon as the trend gains strength, the deviations become larger, and the channel's boundaries diverge.
Bollinger Bands have a useful feature: the price stays about 90-95% of the time within the channel.
Buy
Buying in an uptrend, if the price has tested the middle line from above and is heading towards a trend;
Sell
Selling in a downtrend, if the price has tested the middle line from below and is heading towards a trend.
forex/indicators/bollinger_bands.1670627348.txt.gz · Last modified: 2022/12/09 23:09 by peter