Bollinger Bands Price Action in Trending Forex Markets
Bollinger Bands forex indicator is used to identify and analyze trending forex markets. In a trending forex market this forex indicator clearly shows up or down direction.
Bollinger Bands forex indicator can be used to determine the direction of the Forex trend. In an upward forex trend Bollinger Bands forex indicator will clearly show the direction of the forex trend, it will be heading upwards and forex price will be above middle Bollinger.
In a downward forex trend the forex price will be below the middle band the bands will be heading downwards.
By observing the Bollinger bands forex indicator patterns formed by Bollinger bands a forex trader can determine the direction in which the forex market is likely to move.
Bollinger Bands Indicator Patterns and Continuation Forex Signals
Forex Upward Trend
- During an upswing, the forex candlesticks will stay within the upper Bollinger band the central moving average.
- Forex Prices that close above the upper band are a sign of bullish continuation forex signal.
- Forex Prices can hug/ride the upper band during an upward forex trend
Upward Forex Trend Trading Strategy Using Bollinger Bands Forex Strategy
Forex Downward Trend
- During a down swing, the forex candlesticks will stay within the moving average and the lower band.
- Forex Prices that close below the lower band are a sign of bearish continuation forex signal.
- Forex Prices can hug/ride the lower band during an downward forex trend
Downward Forex Trend Trading Strategy Using Bollinger Bands Forex Strategy