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 Technical Indicator is very important because it is used to give commodity signals that a commodities trading price break out 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 Band indicator is to use the above overbought and oversold commodity guidelines to establish buy & 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 Strategy

In the above ranging commodity market the instances when the commodities trading 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.