Bollinger Bands Indices Trading Strategies
- How Bollinger Bands Works
- Bollinger Bands Market Volatility Analysis
- Bollinger Bands Bulge and Squeeze
- Bollinger Bands Indices Price Action in Trends
- Bollinger Bands Indices Price Action in Range
- Bollinger Bands & Indices Trend Reversals
- Bollinger Bands Indices Trading Strategy Summary
Bollinger Bands Stock Indices Technical Indicator Strategy
Bollinger Bands indicator acts as a measure of volatility. Bollinger Bands indicator is a indices trading price overlay indicator.
Bollinger Bands indicator consists of three lines or bands: the middle band (moving average), an upper band a lower band. These 3 bands will enclose the stock indices price & the stock indices trading price action will move within these 3 bollinger bands.
Bollinger Bands indicator forms upper & lower bands around a moving average. The default moving average for bollinger bands stock indices indicator is the 20-SMA. Bollinger Band stock indices indicator use the concept of standard deviations to form their upper & lower Bands.
The example of Bollinger Bands indicator is shown below.
How to Trade Indices with Bollinger Band Strategy
Because standard deviation is a measure of stock indices trading price volatility and volatility of the stock indices trading market is dynamic, the indices trading bollinger bands keep adjusting their width. Higher stock indices trading price volatility means higher standard deviation and the more the bollinger bands widen. Low stock indices trading price volatility means the standard deviation is lower and the bollinger bands contract.
Bollinger Bands forex indicator use stock indices trading price action to give a large amount of stock indices trading price action movement information. The stock indices trading price information given by the this bollinger bands stock indices indicator includes:
- Periods of low volatility- consolidation phase of the stock indices trading market.
- Periods of high volatility - extended trends, trending stock indices markets.
- Support and resistance levels of the stock indices trading price.
- Buy and Sell points of the stock indices trading price.
