Bollinger Bands Energies Trading Price Action in Ranging Energies Trading Markets

Bollinger Bands Energies Technical Indicator is also used to identify periods when a energies market energies trend is overextended. The guidelines below are considered when applying this energies indicator to a sideways energies trend.

Bollinger Bands Energies Technical Indicator is very important because it is used to give energies signals that a energies price breakout may be upcoming.

During a energies trending market these techniques do not hold, this only holds as long as Bollinger Bands are pointing sideways.

• If the energies market price touches the upper band it can be considered overextended on the upside - overbought.
• If the energies market price touches the lower band the energies price can be considered overextended on the bottom side - oversold.

One of the uses of Energies Trading Bollinger Bands indicator is to use the above overbought and oversold energies guidelines to establish buy & sell targets during a ranging energies market.

• If energies price has bounced off the lower band crossed the center-line moving average then the upper band can be used a sell level.
• If energies price bounces down off the upper band crosses below the center moving average the lower band can be used as a buy level.

Bollinger Bands in Ranging Energies Trading Markets - Bollinger Bands Strategy

In the above ranging energies market the instances when the price hits the upper or lower bands can be used as profit targets for long/short energies trade positions.

Energies trades can be opened when the energies market hits the upper resistance level or lower support level. A stop loss order should be placed a few pips above or below depending on the energies trade opened, just in case the energies price action breaks out of the range within these Bollinger bands.