Bollinger Bands Commodity Trading Price Action in Ranging Commodity Trading Markets

Bollinger Bands Commodities Technical Indicator is also used to identify periods when a commodity market commodity trend is overextended. The guidelines below are considered when applying this commodity indicator to a sideways commodities trend.

Bollinger Bands Commodities Trading Indicator is very important because it is used to give commodity signals that a commodity price breakout may be upcoming.

During a commodity trending market these techniques do not hold, this only holds as long as Bollinger Bands are pointing sideways.

• If the commodities market price touches the upper band it can be considered overextended on the upside - overbought.
• If the commodities market price touches the lower band the commodities price can be considered overextended on the bottom side - oversold.

One of the uses of Commodity Trading Bollinger Bands indicator is to use the above overbought and oversold commodity guidelines to establish buy and sell targets during a ranging commodities market.

• If commodities price has bounced off the lower band crossed the center-line moving average then the upper band can be used a sell level.
• If commodities price bounces down off the upper band crosses below the center moving average the lower band can be used as a buy level.

Trading Bollinger Bands in Ranging Commodity Trading Markets - Bollinger Bands Commodity Trading Strategy

In the above ranging commodity market the instances when the commodities price hits the upper or lower bands can be used as profit targets for long/short commodity trade positions.

Commodities trades can be opened when the commodity market hits the upper resistance level or lower support level. A stop loss commodity order should be placed a few pips above or below depending on the commodity trade opened, just in case the commodities price action breaks out of the range within these Bollinger bands.