Trade Stock Indices

Bollinger Bands Price Action in Trending Markets

Bollinger Band indicator is used to identify & analyze trending markets. In a trending market this trading indicator clearly shows up or down direction.

Bollinger Band forex indicator can be used to determine the direction of the market trend. In an upward trend Bollinger Band indicator will clearly show the direction of the market trend, it will be heading upward and price will be above middle Bollinger.

In a downward trend the price will be below the middle band the bands will be heading downward.

By observing the Bollinger bands trading indicator patterns formed by Bollingers a stock indices trader can determine the direction in which the market is likely to move.

Bollinger Band Technical Indicator Patterns and Continuation Signals

Stock Index Upward Trend

  • During an upswing, candlesticks will stay within the upper Bollinger 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


Bollinger Band Price Action in Trending Markets - Bollinger Band Indicator Analysis

Upward Trend Strategy Using Bollinger Band Stock Indices Strategy

Stock Index Downward Trend

  • During a down swing, candlesticks 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 Band Price Action in Trending Markets

Downward Trend Strategy Using Bollinger Band Stock Indices Strategy

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