Bollinger Bands Strategy
- How Bollinger Bands Works
- Bollinger Bands Market Volatility Analysis
- Bollinger Bands Bulge and Squeeze
- Bollinger Bands Silver Price Action in Trends
- Bollinger Bands Silver Price Action in Range
- Bollinger Bands & Silver Trend Reversals
- Bollinger Bands Silver Trading Strategy Summary
Bollinger Bands Silver Technical Indicator Strategy
Bollinger Bands indicator acts as a measure of volatility. Bollinger Bands technical indicator is a xagusd 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 xagusd price and the xagusd price action will move within these 3 bollinger bands.
Bollinger Bands indicator forms upper & lower bands around a moving average. Default moving average for bollinger bands silver technical indicator is the 20-SMA. Bollinger Bands indicator use the concept of standard deviationss to form their upper and lower Bands.
The example of Bollinger Bands indicator is shown below.
How to Trade Silver with Bollinger Band Strategy
Because standard deviation is a measure of xagusd price volatility and volatility of the xagusd trading market is dynamic, the silver trading bollinger bands keep adjusting their width. Higher xagusd price volatility means higher standard deviation and the more the bollinger bands widen. Low xagusd price volatility means the standard deviation is lower and the bollinger bands contract.
Bollinger Bands forex indicator use xagusd price action to give a large amount of xagusd price action movement information. The xagusd price information given by the this bollinger bands silver indicator includes:
- Periods of low volatility- consolidation phase of the xagusd trading market.
- Periods of high volatility - extended trends, trending silver markets.
- Support and resistance levels of the xagusd price.
- Buy and Sell points of the xagusd price.
