Trade Forex Trading

Learn Lessons, Strategies and Technical Analysis

Bollinger Bands Indicator Bulge and Squeeze Technical Analysis

The Bollinger Bands are self adjusting which means the bands widen and narrow depending on volatility.


Standard Deviation is the statistical measure of the volatility used to calculate the widening or narrowing of the  bands. Standard deviation will be higher when prices are changing significantly and lower when markets are calmer.

  • When volatility is high the Bands widen.
  • When volatility is low the Bands narrows.


The Bollinger Squeeze

Narrowing of Bands is a sign of consolidation and is known as the Bollinger band squeeze.


When the Bollinger Bands display narrow standard deviation it is usually a time of consolidation, and it is a signal that there will be a price breakout and it shows people are adjusting their positions for a new move. Also, the longer the prices stay within the narrow bands the greater the chance of a breakout.

Bollinger Bands Squeeze

Bollinger Squeeze

The Bollinger Bulge

The widening of Bands is a sign of a breakout and is known as the Bulge.


Bollinger Bands that are far apart can serve as a signal that a trend reversal is approaching. In the example below, the bands get very wide as a result of high volatility on the down swing. The trend reverses as prices reach an extreme level according to statistics and the theory of normal distribution. The "bulge" predicts the change to downtrend.

Bollinger Bands Bulge

Bollinger  Bulge

Open an XM Live Account and Get 100 % Bonus and up to $6.67 Per Lot Traded with XM: Read More

Copy Top MQL5 Signals From Profitable Traders: Read The Article "How to Copy Top MQL5 Signals"

Takes 4 to 6 weeks to open an account, open an account early: Read The Article "Account Opening Procedure"

Malaysia Seminar

Poland FX Seminar Gala

XM Account Holders Attend Poland FX Seminar

XM Account Holders Phillipines Seminar

XM Account Holders Thailand Seminar

XM Account Holders Hungary Seminar

XM Forex Broker - Big Fair Human

XM Forex Broker Regulation and Licenses

MQL5 Signals

Free Forex Bonus Up To $5000

Silver and Gold

Recommended Broker


Top MQL5 Signals