Bollinger Bands Energies Technical Indicator Bulge and Squeeze Analysis

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

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

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

The Bollinger Bands Squeeze

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

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

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

The Bollinger Bulge

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

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

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