Bollinger Bands CFDs Indicator and CFD Price Volatility

When cfd price volatility is high; cfd prices close far away from the moving average, the cfd Bollinger Bands width increases to accommodate more possible cfd price action movement which can fall within 95% of the mean.

Bollinger bands cfd indicator will widen as cfd price volatility widens. This will show as bollinger band bulges around the cfd price. When the cfd bollinger bands widen like this it is a continuation cfd pattern and cfd price will continue moving in this direction. This is normally a continuation cfd trade signal.

The Bollinger bands cfd indicator example explained and illustrated below illustrates the Bollinger bulge.

High CFD Price Volatility - CFDs Bollinger Band Indicator - Bollinger Bands Bulge

When cfd price volatility is low: cfd prices close closer toward the moving average, the width decreases to reduce the possible cfd price action movement which can fall within 95% of the mean.

When cfd price volatility is low cfd price will start to consolidate waiting for cfd price to breakout. When the cfd bollinger bands indicator is moving sideways it is best to stay on the sidelines and not to place any cfds trades.

The Bollinger bands indicator example is illustrated below when the cfd bollinger bands narrowed.

Low CFD Price Volatility - CFDs Bollinger Band Indicator - Bollinger Bands Squeeze