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Bollinger Band

Derived from the original and initial Bollinger band.

The Bollinger Fibonacci ratios indicator tracks volatility, but it doesn't use standard deviation to set the channel width. Instead, it relies on a smoothed ATR, multiplying it by Fibonacci ratios like 1.618, 2.618, and 4.236.

These standardized lines, subsequently multiplied by the Fibo ratios, are then either added to or subtracted from the Moving Average (MA).

This forms 3 upper Fibonacci bands and Three lower Fibonacci bands

Middle band forms the basis of the trend.

Bollinger Bands Indicator - Bollinger Bands: Fib Ratios BTCUSD Indicator Analysis

BTCUSD Analysis and How to Generate Trading Signals

This specific BTCUSD indicator is employed to ascertain critical support and resistance boundaries for cryptocurrency movements.

The lines below represent support points while those above are resistance levels.

The outer-most bands provide the strongest support/resistance.

Inner most bands provide least support/resistance.

The innermost band represents Fibonacci 38.20% retracement level

The second band represents Fibonacci 50 % retracement level

The outermost band represents Fibonacci 61.80% retracement level

The indicator is used to figure out points where bitcoin price might reverse. (Bitcoin Price Pullback Levels)

When the bitcoin price reaches one of the lines and reverses, it generates an entry or exit trade signal.

However, it is always good to combine the signal with other confirmation indicators such as the MA to confirm the trading signal just as is shown below.

Bollinger Bands - Bollinger Bands: Fib Ratios BTCUSD Indicator Analysis - How Do I Draw Fib Projection?

Technical Analysis in BTCUSD Crypto Trading

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