fbpx

PU Prime App

Exclusive deals on mobile

  • Analysis

28 December 2020,07:34

Analysis

Bollinger Bands

28 December 2020, 07:34

Share on:
FacebookLinkedInTwitterShare

Bollinger bands is an analytical tool used by traders to identify a market’s volatility and looks at the levels of current prices relative to previous trades.

We can see from the above graph that in an instance where there is little volatility the bands contract and as the market becomes increasingly volatile the bands expand.

It may be simpler to look at Bollinger bands as a form of support and resistance.

Often what is seen with Bollinger bands is that as the price deviates within the band it often tends to return back to a middle ground; this is what is known as the Bollinger Bounce.

Often the bands can be seen to “squeeze” together such as in the graph below:

Many traders see a band squeeze as an indication that there is a pending breakout in the market. If the graph is seen to move towards the upper band then an upwards trend is usually expected. The opposite is true when the candlestick is seen to be approaching the lower bound.

An example of a “breakout can be seen below”:

It is not an often occurrence to see a Bollinger squeeze; when looking at a 15 minute candlestick chart it will be experienced only a couple of times a week.

把握优势,开始交易

以行业低点差和闪电般的执行速度交易外汇、指数、贵金属等。

  • 在我们的Standard账户上以最低50美元的入金金额开始交易。
  • 获得全天候支持。
  • 获取数百种交易工具、免费教学器材和最佳的优惠活动。
立即加入

Latest Posts

简单快速的
开设账户

开设真实账户
  • 1

    即刻申请

    通过无障碍程序注册

    PU Prime

    真实账户

  • 2

    轻松入金

    通过多种渠道及可接受的货币轻松地为您的账户入金

  • 3

    开始交易

    在市场领先的交易条件下,交易数百种产品

Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.

Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.

By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.

Thank You for Your Acknowledgement!

Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.

Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.

Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.

Thank You for Your Acknowledgement!