Bollinger Bands Indices Price Action in Trending Indices Trading Markets
Bollinger Bands indicator is used to identify and analyze trending stock indices markets. In a trending stock indices market this stock indices technical indicator clearly shows up or down direction.
Bollinger Bands indicator can be used to determine the direction of the Indices trend. In an upward indices trend Bollinger Bands indicator will clearly show the direction of the trend, it will be heading upwards and stock indices trading price will be above middle Bollinger.
In a downward indices trend the stock indices trading price will be below the middle band the bands will be heading downwards.
By observing the Bollinger bands stock indices indicator patterns formed by Bollinger bands a trader can determine the direction in which the stock indices trading market is likely to move.
Bollinger Bands Indices Indicator Patterns and Continuation Trading Signals
Indices Upward Trend
- During an upswing, the indices candlesticks will stay within the upper Bollinger band the central moving average.
- Indices Prices that close above the upper band are a sign of bullish continuation indices trade signal.
- Indices Prices can hug/ride the upper band during an upwards indices trend
Upward Indices Trend Strategy Using Bollinger Bands Strategy
Stock Indices Downwards Trend
- During a down swing, the indices candlesticks will stay within the moving average & the lower band.
- Indices Prices that close below the lower band are a sign of bearish continuation indices trade signal.
- Indices Prices can hug/ride the lower band during an downwards indices trend
Downwards Indices Trend Strategy Using Bollinger Bands Strategy
