Bollinger Band Price Action in Ranging Bitcoin Trading Markets

Bollinger Band Indicator is also used to identify periods when a trading market trend is overextended. The guidelines below are considered when applying this indicator to a sideways trend.

Bollinger Band BTC/USD Indicator is very important because it is used to give bitcoin trading signals that a bitcoin price break out may be upcoming.

During a bitcoin trending market these techniques don't hold, this only holds as long as Bollinger Bands are pointing sideways.

If the btcusd trading market bitcoin price touches/tests the upper band it can be considered overextended on the upside - over-bought.
If the btcusd trading market bitcoin price touches the lower band the bitcoin price can be considered overextended on the bottom side - over-sold.

One of the uses of Bitcoin Bollinger Band indicator is to use the above overbought and oversold bitcoin trading guidelines to establish buy & sell targets during a ranging bitcoin market.

If bitcoin price has bounced off the lower band crossed the centerline moving average then the upper band can be used a sell level.
If bitcoin price bounces down off the upper band crosses below center moving average the lower band can be used as a buy level.

Trading Bollinger Band in Range Bound Bitcoin Trading Markets

Bollinger Band in Range Bound Bitcoin Trading Markets - Bollinger Band Method

In the above ranging cryptocurrency market the instances when the bitcoin price hits the upper or lower bands can be used as profit targets for long/short bitcoin trade positions.

trades can be opened when the bitcoin market hits the upper resistance area or lower support zone. A stop loss bitcoin order should be placed a few pips above or below depending on the bitcoin trade opened, just in case the bitcoin price action breaks-out of the range within these Bollinger bands.

More Tutorials & Topics:

Trade Bitcoin Trading

Bollinger Band Price Action in Ranging Bitcoin Trading Markets