Bollinger Bands Commodities Technical Indicator Bulge and Squeeze Technical Analysis

The Commodity Trading Bollinger Band are self adjusting which means the bands widen and narrow depending on commodities trading price volatility.

Standard Deviation is the statistical measure of the trading price volatility used to calculate the widening or narrowing of the commodity Bollinger bands. Standard deviation will be higher when commodities trading prices are changing significantly and lower when the market commodities trading prices are calmer.

• When commodities trading price volatility is high the Bollinger Bands widen.
• When commodities price volatility is low the Bollinger Bands narrows.

The Bollinger Band Squeeze

Narrowing of commodity Bollinger Bands is a sign of commodities price consolidation & is known as Bollinger band squeeze.

When the Bollinger Bands indicator display narrow standard deviation it's usually a time of commodities trading price consolidation, and it is a signal that there will be a trading price breakout and it shows traders are adjusting their trade positions for a new move. Also, the longer the trading prices stay within the narrow bands the greater the chance of a price breakout.

Bollinger Squeeze - The Bollinger Bands Squeeze - How to Trade Bollinger Bands Squeeze

The Bollinger Bulge

The widening of Bollinger Bands is a sign of a trading price break out & is known as Bollinger Bands Bulge.

Bollinger Bands that are far apart can serve as a signal that a trend reversal is approaching. In the Bollinger bands indicator example illustrated & described below, the commodity Bollinger bands get very wide as a result of high trading price volatility on the down swing. The trend reverses as trading prices reach an extreme level according to statistics & the theory of normal distribution. The "bulge" predicts the change to a commodities trading downwards trend.

Bollinger Bulge - The Bollinger Bulge - How to Trade Bollinger Band Bulge