Bollinger Band Price Action in Trending Markets

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

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

In a downwards 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 trader can determine the direction in which the forex market is likely to move.

Bollinger Bands Indicator Patterns and Continuation Signals

Upward Trend

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

Upward Trend Strategy Using Bollinger Band Strategy

Downwards Trend

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

Downwards Trend Strategy Using Bollinger Band Strategy