Bollinger Bands Strategy

• How Bollinger Bands Works
• Bollinger Bands Market Volatility Analysis
• Bollinger Bands Bulge and Squeeze
• Bollinger Bands Energies Trading Price Action in Trends
• Bollinger Bands Energies Trading Price Action in Range
• Bollinger Bands and Energies Trend Reversals
• Bollinger Bands Energies Trading Strategy Summary

Bollinger Bands Energies Technical Indicator Strategy

Bollinger Bands indicator acts as a measure of volatility. Bollinger Bands indicator is a energies price overlay indicator.

Bollinger Bands indicator consists of three lines or bands; the middle band (moving average), an upper band a lower band. These three bands will enclose the energies price & the energies price action will move within these three bollinger bands.

Bollinger Bands indicator forms upper and lower bands around a moving average. The default moving average for bollinger bands energies technical indicator is the 20-SMA. Bollinger Bands indicator use the concept of standard deviations to form their upper and lower Bands.

The example of Bollinger Bands indicator is shown below.

Bollinger Bands Energies Trading Indicator - How to Trade Energies Trading with Bollinger Band Strategy

Because standard deviation is a measure of energies price volatility and volatility of the energies market is dynamic, the energies bollinger bands keep adjusting their width. Higher energies price volatility means higher standard deviation and the more the bollinger bands widen. Low energies price volatility means the standard deviation is lower and the bollinger bands contract.

Bollinger Bands forex indicator use energies price action to give a large amount of energies price action movement information. The energies price information given by the this bollinger bands energies indicator includes:

• Periods of low volatility- consolidation phase of the energies trading market.
• Periods of high volatility - extended trends, trending energies trading markets.
• Support and resistance levels of the energies price.
• Buy and Sell points of the energies price.