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Bitcoin Bollinger Bands Volatility Breakout

The BTC/USD Crypto Bollinger Band Volatility Indicator are self adjusting which means that the Bollinger bands widen and narrow depending on bitcoin price volatility.

Standard Deviation is the statistical measure of bitcoin price volatility that is used in calculating the widening of the bitcoin Bollinger bands or narrowing of the bitcoin Bollinger bands. Standard deviation will be higher when the bitcoin prices are changing substantially and Standard deviation will be lower when the cryptocurrency market prices are not changing a lot.

  • When the bitcoin price volatility is high the Bollinger Band widen - Bollinger Band Breakout Strategy.
  • When bitcoin the bitcoin price volatility is low the Bollinger Band narrows - Bollinger Band Consolidation Strategy.

The Bollinger Bands Squeeze

Narrowing of the bitcoin Bollinger Band is a sign of bitcoin price consolidation and is known as the Bollinger Band Squeeze.

When the Bollinger Band indicator illustrate narrow standard deviation it's generally a time of bitcoin price consolidation, and this is also a bitcoin signal that there will be a bitcoin price breakout and it shows that bitcoin traders are adjusting their bitcoin trades for a new bitcoin trend move. Also, the longer the bitcoin prices stay within the narrow Bollinger Band range the greater the chance of a bitcoin price break out.

Bollinger Band Squeeze - Bollinger Band Breakout BTCUSD Strategy - Bollinger Band Consolidation Trade Strategy

Bollinger Band Squeeze - Bollinger Band Breakout Strategy - Bollinger Band Consolidation Strategy

BTCUSD Bollinger Bands Volatility Break out

The widening of Bollinger Bands indicator is a sign of a bitcoin price break out and this is known as Bollinger Band Bulge.

Bollinger Bands indicator which are far apart can be interpreted as a signal that a bitcoin trend reversal is likely to happen. In the Bollinger Band indicator cryptocurrency example shown below, the bitcoin Bollinger Band get very wide as a result of high bitcoin market price volatility. The bitcoin crypto trend reverses as bitcoin prices reach an extreme level according to statistics and the theory of normal distribution. The "Bollinger Band Bulge" predicts the change of the trend to a bitcoin trading down-ward trend.

Bollinger Band Volatility Breakout - Bollinger Band Breakout BTCUSD Strategy

Bollinger Band Bulge - Bollinger Band Volatility Breakout - Bollinger Band Breakout Strategy Method

Bollinger Band Volatility Bitcoin Trading Break out - Bitcoin Trading Analysis Using Bollinger Band Volatility CryptoCurrency Indicator - Bollinger Band Breakout BTCUSD Strategy - Bollinger Band Consolidation Strategy Method

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