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 commodities 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 commodity 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 is usually a time of commodities trading price consolidation, and it is a commodity signal that there will be a commodities trading price breakout and it shows commodity traders are adjusting their trade positions for a new move. Also, the longer the commodities trading prices stay within the narrow bands the greater the chance of a commodities 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 commodities trading price break-out & is known as 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 trading price volatility on the down swing. The commodity trend reverses as commodities trading prices reach an extreme level according to statistics and the theory of normal distribution. The "bulge" predicts the change to a commodities trading downward trend.

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