Bollinger Bands Stocks Strategies
- How Bollinger Bands Works
- Bollinger Bands Market Volatility Analysis
- Bollinger Bands Bulge and Squeeze
- Bollinger Bands Stocks Price Action in Trends
- Bollinger Bands Stocks Price Action in Range
- Bollinger Bands and Stocks Trend Reversals
- Bollinger Bands Stocks Strategy Summary
Bollinger Bands Stock Technical Indicator Strategy
Bollinger Bands stocks indicator acts as a measure of volatility. Bollinger Bands stocks indicator is a stocks 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 stocks price and the stocks price action will move within these three bollinger bands.
Bollinger Bands stocks indicator forms upper and lower bands around a moving average. The default moving average for bollinger bands stocks indicator is the 20-SMA. Bollinger Bands stocks indicator use the concept of standard deviations to form their upper and lower Bands.
The example of Bollinger Bands stocks indicator is shown below.
Bollinger Bands Stock Indicator - How to Trade Stocks Trading with Bollinger Band Stocks Strategy
Because standard deviation is a measure of stocks price volatility and volatility of the stocks market is dynamic, the stocks bollinger bands keep adjusting their width. Higher stocks price volatility means higher standard deviation and the more the bollinger bands widen. Low stocks price volatility means the standard deviation is lower and the bollinger bands contract.
Bollinger Bands forex indicator use stocks price action to give a large amount of stocks price action movement information. The stocks price information given by the this bollinger bands stocks indicator includes:
- Periods of low volatility- consolidation phase of the stock trading market.
- Periods of high volatility- extended trends, trending stock trading markets.
- Support and resistance levels of the stocks price.
- Buy and Sell points of the stocks price.
