Bollinger Bands Price Action in Trending Trading Markets
Bollinger Bands indicator is used to identify and analyze trending markets. In a trending market this indicator clearly shows up or down direction.
Bollinger Bands indicator can be used to determine the direction of the trend. In an upward silver trend Bollinger Bands indicator will clearly show the direction of the trend, it will be heading upwards and price will be above middle Bollinger.
In a downwards trend the xagusd price will be below the middle band the bands will be heading downwards.
By observing the Bollinger bands indicator patterns formed by Bollinger bands a trader can determine the direction in which the xagusd trading market is likely to move.
Bollinger Bands XAGUSD Indicator Patterns and Continuation Trading Signals
Silver Upwards Trend
- During an upswing, the candles will stay within the upper Bollinger band the central moving average.
- Silver Prices that close above the upper band are a sign of bullish continuation signal.
- Silver Prices can hug/ride the upper band during an upwards trend
Upward Silver Trend Method Using Bollinger Band Method
Downward Trend
- During a down swing, the candlesticks will stay within the moving average & the lower band.
- Silver Prices that close below the lower band are a sign of bearish continuation signal.
- Silver Prices can hug/ride the lower band during an downward silver trend
Downward Silver Trend Method Using Bollinger Band Method