Bollinger Bands Commodities Technical Indicator Bulge and Squeeze Technical Analysis

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

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

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

The Bollinger Bands Squeeze

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

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

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

The Bollinger Bulge

The widening of Bollinger Bands is a sign of a commodity price breakout and is known as the Bollinger Bands Bulge.

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

Bollinger Bulge - The Bollinger Bulge - How to Commodities Trade Bollinger Bands Bulge