Bollinger Bands Commodity Trading Strategies

• How Bollinger Bands Works
• Bollinger Bands Market Volatility Analysis
• Bollinger Bands Bulge and Squeeze
• Bollinger Bands Commodity Trading Price Action in Trends
• Bollinger Bands Commodity Trading Price Action in Range
• Bollinger Bands and Commodities Trend Reversals
• Bollinger Bands Commodity Trading Strategy Summary

Bollinger Bands Commodities Technical Indicator Strategy

Bollinger Bands commodity indicator acts as a measure of volatility. Bollinger Bands commodity indicator is a commodity price overlay indicator.

Bollinger Bands indicator consists of three lines or bands; the middle band (moving average), an upper band a lower band. These three bands will enclose the commodities price and the commodities price action will move within these three bollinger bands.

Bollinger Bands commodity indicator forms upper and lower bands around a moving average. The default moving average for bollinger bands commodity indicator is the 20-SMA. Bollinger Bands commodity indicator use the concept of standard deviations to form their upper and lower Bands.

The example of Bollinger Bands commodity indicator is shown below.

Bollinger Bands Commodity Trading Indicator - How to Trade Commodity Trading with Bollinger Band Commodity Trading Strategy

Because standard deviation is a measure of commodities price volatility and volatility of the commodity market is dynamic, the commodity bollinger bands keep adjusting their width. Higher commodities price volatility means higher standard deviation and the more the bollinger bands widen. Low commodities price volatility means the standard deviation is lower and the bollinger bands contract.

Bollinger Bands forex indicator use commodities price action to give a large amount of commodities price action movement information. The commodities price information given by the this bollinger bands commodity indicator includes:

• Periods of low volatility- consolidation phase of the commodities trading market.
• Periods of high volatility- extended trends, trending commodities trading markets.
• Support and resistance levels of the commodity price.
• Buy and Sell points of the commodity price.