Bollinger Bands Strategy
- 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 indicator acts as a measure of volatility. Bollinger Bands indicator is a commodities price overlay indicator.
Bollinger Bands indicator consists of three lines or bands: the middle band (moving average), an upper band a lower band. These 3 bands will enclose the commodities price and the commodities price action will move within these three bollinger bands.
Bollinger Bands indicator forms upper & lower bands around a moving average. Default moving average for bollinger bands commodity indicator is the 20-SMA. Bollinger Band commodity indicator use the concept of standard deviationss to form their upper & lower Bands.
The example of Bollinger Bands indicator is shown below.
Bollinger Band Commodity Indicator - How to Trade Commodity with Bollinger Band 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 commodities price.
- Buy and Sell points of the commodities price.
