Bollinger Bands Commodity Trading Price Action in Trending Commodity Trading Markets
Bollinger Bands indicator is used to identify and analyze trending commodity markets. In a trending commodity market this commodity technical indicator clearly shows up or down direction.
Bollinger Bands indicator can be used to determine the direction of the Commodities trend. In an upward commodity trend Bollinger Bands indicator will clearly show the direction of the commodity trend, it will be heading upwards and commodities price will be above middle Bollinger.
In a downwards commodity trend the commodities price will be below the middle band the bands will be heading downwards.
By observing the Bollinger bands commodity indicator patterns formed by Bollinger bands a trader can determine the direction in which the commodity market is likely to move.
Bollinger Bands Commodities Technical Indicator Patterns and Continuation Trading Signals
Commodities Upwards Trend
- During an upswing, the commodity candles will stay within the upper Bollinger band the central moving average.
- Commodities Prices that close above the upper band are a sign of bullish continuation commodities trading signal.
- Commodities Prices can hug/ride the upper band during an upward commodity trend
Upward Commodities Trend Strategy Using Bollinger Band Strategy
Commodity Downwards Trend
- During a down swing, the commodity candlesticks will stay within the moving average and the lower band.
- Commodities Prices that close below the lower band are a sign of bearish continuation commodities trading signal.
- Commodities Prices can hug/ride the lower band during an downwards commodity trend
Downwards Commodities Trend Strategy Using Bollinger Band Strategy
