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Tons of a program make. When the market is quiet, the bands contract forexbug when the market is LOUD, the bands expand.
Notice on the chart below that when price is quiet, the bands are close together. When price moves up, the bands spread apart.
One thing you should know about Bollinger Bands is that price tends to return to the bollinger bands tactics of the bands.
If you said down, then you are correct!
As you lotus forex private limited see, the price settled back down towards the middle area of the bands. What you just saw was a classic Bollinger Bounce. The reason these bounces occur is because Bollinger bands act like dynamic bollinger bands tactics and resistance levels.
The longer the time frame you are in, the stronger these bands tend to be.
Many cheapest option trading australia have developed systems that thrive on these bounces and this strategy is best used when the market is ranging and there is no clear trend. Bollinger bands tactics bollinnger bands squeeze together, it usually means that a breakout is getting ready to happen. Looking at the chart above, you can see the bands squeezing together.
Description:Using Bollinger Bands as our entry point we can stay out of markets that are Learn about Bollinger Bands Trading Strategy, find out Bollinger Bands Formula.