Bollinger Bands Strategy

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

Bollinger Bands Indicator Strategy

Bollinger Bands indicator acts as a measure of volatility. Bollinger Bands indicator is a 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 price and the 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 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 Method

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

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

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