Bollinger Bands Price Action in Trending Markets

Bollinger Bands indicator is used to identify and analyze trending cfd markets. In a trending cfd market this technical indicator clearly shows up or down direction.

Bollinger Bands indicator can be used to determine the direction of the CFD trend. In an upward cfd trend Bollinger Bands indicator will clearly show the direction of the cfd trend, it will be heading upwards and price will be above middle Bollinger.

In a downwards trend the price will be below the middle band the bands will be heading downwards.

By observing the Bollinger bands indicator patterns formed by Bollinger bands a trader can determine the direction in which the cfd market is likely to move.

Bollinger Bands Indicator Patterns and Continuation CFD Signals

Upwards Trend

• During an upswing, the cfd candles will stay within the upper Bollinger band the central moving average.
• CFD Prices that close above the upper band are a sign of bullish continuation trade signal.
• CFD Prices can hug/ride the upper band during an upwards trend

Upward Trend Strategy Method Using Bollinger Band CFD Method

Down-ward Trend

• During a down swing, the cfd candlesticks will stay within the moving average & the lower band.
• CFD Prices that close below the lower band are a sign of bearish continuation trade signal.
• CFD Prices can hug/ride the lower band during an downward cfd trend

Downward Trend Strategy Method Using Bollinger Band CFD Method