Bollinger Bands Price Action in Trending Forex Markets

Bollinger Bands indicator is used to identify and analyze trending forex markets. In a trending forex market this technical indicator clearly shows up or down direction.

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

In a downwards trend the forex 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 forex market is likely to move.

Bollinger Bands Indicator Patterns and Continuation Signals

Forex Upward Trend

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

Upward Forex Trend Strategy Using Bollinger Band Strategy

Forex Downwards Trend

• During a down swing, the forex candlesticks will stay within the moving average & the lower band.
• Prices that close below the lower band are a sign of bearish continuation forex signal.
• Prices can hug/ride the lower band during an downwards trend

Downwards Forex Trend Strategy Using Bollinger Band Strategy