Bollinger Band Price Action in Trending Markets

Bollinger Bands indicator is used to identify & analyze trending markets. In a trending market this technical indicator clearly illustrates up or down direction.

Bollinger Band can be used to identify the direction of the trend. In an upward trend Bollinger Bands indicator will clearly show the direction of the market trend, it will be heading upwards and price will be above middle Bollinger.

In a downward trend the price will be below the middle band the bands will be heading downward.

By observing the Bollinger band indicator patterns occurred by Bollinger band one can determine the trend direction in which the market is likely to move.

Bollinger Band Indicator Patterns and Continuation Signals

Upward Trend

• During an upswing, the candlesticks will stay within the upper band the central moving average.
• XAUUSD Prices that close above the upper band are a sign of bullish continuation signal.
• XAUUSD Prices can hug/ride the upper band during an upwards trend

Upwards Trend Method Using Bollinger Bands XAU USD Method

XAUUSD Downward Trend

• During a down swing, the candles will stay within the moving average MA & the lower band.
• XAUUSD Prices that close below the lower band are a sign of bearish continuation trading signal.
• XAUUSD Prices can hug/ride the lower band during an downward trend

Downwards Trend Strategy Method Using Bollinger Bands XAU USD Method

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