Forex Bollinger Band width Expert Advisor Setup - Setting Up Bollinger Band width Expert Advisor
Forex Bollinger Band width Expert Advisor Setup - Setting Up Bollinger Band width Expert Advisor - A trader can come up with an Bollinger Band width Expert Advisor based on the awesome indicator explained below.
Forex Bollinger Band width Expert Advisor rules can be combined with other indicators to come up with other EA Robots that trade using rules based on two or more indicators combined to form a system.
Bollinger Band width Technical Analysis Signals
Developed by John Bollinger.
This technical indicator is derived from the original Bollinger indicator.
Bandwidth is a measure of the width of the Bollinger Band
Calculation
Bandwidth = Upper Band - Lower Band
Middle Band
Forex Bollinger Band width Expert Advisor Setup
This is an oscillator, based on the theory that price & volatility occurs in cycles.
Periods of high volatility is followed by periods of low volatility.
When volatility is high, bands are far apart, the bandwidth also will be wide apart.
When volatility is low, Bands are narrow & the bandwidth indicator also will not be narrow.
The blue line represents the highest Bandwidth value for a previous number of periods.
This line also identifies periods of high volatility
The redline represents the lowest Bandwidth value for a previous number of periods.
This line also identifies periods of low volatility
Forex Technical Analysis & How to Generate Signals
Consolidation - Bollinger Squeeze
Bollinger Band-width is used to identify the squeeze, which is a consolidation period of price, after which the price then breaks out in a particular direction.
Signals are generated when there's a price breakout signal gets generated by indicator starting to go up after touching the red-line. When the bandwidth line starts to move up it signifies that volatility is rising as the price is breaking out.
Squeeze
Breakout Signal After Bandwidth Squeeze
However, this is a directionless indicator and needs to be combined with another indicator such as the MA to figure out the direction of the trend/ Break out.
