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Bollinger Band BTCUSD Methods

Bollinger ==22==BandBands Bitcoin Indicator Strategy

Bollinger ==22==BandBands cryptocurrency indicator acts and is used as a measure of volatility. Bollinger Bands is a bitcoin price overlay indicator.

Bollinger Band indicator consists of 3 lines or bands: the middle band (moving average), an upper band a lower band. These three bands will enclose the bitcoin price & the bitcoin price action will move within these three bollinger bands.

Bollinger ==22==BandBands cryptocurrency indicator forms upper & lower bands around a moving average MA. Default moving average for bollinger bands technical indicator is the 20-SMA. Bollinger ==22==BandsBand cryptocurrency indicator use the concept and formula of standard deviation to form their upper and lower Bands.

The example of Bollinger ==22==BandsBand cryptocurrency indicator is shown below.

3 Bollinger Bands BTCUSD Strategies - Bollinger ==22==BandsBand BTCUSD Indicator BTCUSD Strategy

Bollinger Bands Indicator - How to Trade Bitcoin with Bollinger ==22==BandBands Method

Because standard deviation is a measure of bitcoin price volatility and volatility of the btcusd market is dynamic, the bitcoin trading bollinger bands keep adjusting their width. Higher bitcoin price volatility means higher standard deviation and the more the bands widen. Low bitcoin price volatility means the standard deviation is lower and the bollinger bands contract.

Bollinger Band forex indicator use bitcoin price action to give a large amount of bitcoin price action movement information. The bitcoin price information given by the bollinger bands indicator includes:

  • Periods of low market volatility - consolidation period of the btcusd market.
  • Periods of high volatility - extended trends, trending markets.
  • Support and resistance levels of the bitcoin price.
  • Buy and Sell points of the bitcoin price.

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