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Bollinger Band width Bitcoin Analysis & Bollinger ==22==BandBands width Signals

Developed by John Bollinger.

This btcusd technical indicator is derived from the initial Bollinger indicator.

Bandwidth is a measure of width of Bollinger Band

Calculation

Band-width = Upper Band - Lower Band

Middle Band

Bollinger Band-width Crypto Indicator - Bollinger Band-width BTCUSD ==22==Technical Indicator Analysis on BTCUSD Trading

This is an oscillator trading indicator, based on the theory that bitcoin price & volatility occurs in cycles.

Periods of high volatility are followed by periods of low market volatility.

When volatility is high, bands are far apart, the bandwidth will also be wide apart.

When volatility is low, Bands are narrow and the bandwidth indicator will also not be narrow.

The blue-line represents the highest Band-width value reading for a previous number of periods.

This line also identifies the periods of high volatility

The red-line represents the lowest Bandwidth value reading for a previous number of periods.

This line also identifies the periods of low market volatility

BTCUSD Analysis and How to Generate Trading Signals

Consolidation - Bollinger Squeeze

Bollinger Band-width is used to identify the squeeze, which is a consolidation period of bitcoin price, after which the bitcoin price then breaks-out in a particular direction.

The Signals are generated/derived when there's a bitcoin price break out - signal is generated by the indicator starting to go up after touching the red line. When the bandwidth line starts and begins to move upward it signifies that volatility is rising as the bitcoin price is breaking out.

Bollinger Band-width Bitcoin Indicator Squeeze - Bollinger ==22==Band-widthBandwidth BTCUSD Indicator Analysis in BTC USD Trading

Squeeze

Breakout Signal After Bollinger Band-width Squeeze - Bollinger ==22==Band-widthBandwidth Crypto Indicator Analysis in Crypto Trading

Break Out Signal After Bandwidth Squeeze

However, this is a directionless indicator & needs to be combined with another trading indicator like the moving average to figure out the direction of the trend/ Break Out.

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