Trade Forex Trading

Bollinger Bands Price Action in Trending Markets

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

Bollinger Bands help spot the trend direction. In an uptrend, they make the price path clear. The price stays above the middle band as it rises.

During a declining forex trend, the forex price action stays beneath the middle band, and the bands themselves are directed downwards.

Watch Bollinger Band patterns in forex trading. They help predict the next move in currency markets.

Bollinger Band Patterns & Continuation Signals

Upwards Trend

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

Upwards Trend Strategy Using Bollinger Band Strategy - Bollinger Band Price Action in Upwards Trend & Downwards Trend

Upward Trend Strategy Using Bollinger Bands Strategy

Downward Trend

  • During a downwards swing, the forex candlesticks will stay within the moving average and 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 Bands Strategy

Downwards Trend Strategy Using Bollinger Bands Strategy

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