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Bollinger Band Price Action in Trending Markets

The Bollinger Bands indicator helps to spot and study markets that are trending: in such markets, this indicator clearly points out the direction.

Bollinger Bands forex indicator can be employed to ascertain the trajectory of the market price trend. In an upward market trend Bollinger Bands indicator will distinctly reveal the direction of the market price trend, it will be proceeding and advancing upward and price will be above the central Bollinger line.

In a downward fashion the charge could be below the middle band the bands could be heading downward.

A indices trader may ascertain the trend direction the market is likely to go by analyzing the patterns of the Bollinger band trading indicator created by Bollingers.

Bollinger Bands Indicator Patterns and Continuation Signals

Stock Index Upward Trend

  • During an upswing, candles will stay within the upper band the central moving average.
  • Stock Index Prices that close above the upper band are a sign of bullish continuation signal.
  • Stock Index Prices can hug/ride the upper band during an upward trend


Analyzing Bollinger Bands Price Behavior in Markets with Clear Trends

Upward Trend Strategy Using Bollinger Bands Stock Index Strategy

Stock Index Downward Trend

  • During a down swing, candles will stay within the moving average and the lower band.
  • Stock Index Prices that close below the lower band are a sign of bearish continuation signal.
  • Stock Index Prices can hug/ride the lower band during an downward trend


Bollinger Bands Price Action in Trending Markets

Downward Trend Strategy Using Bollinger Bands Stock Index Trade Strategy

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