Bollinger Band Price Action in Trending Markets

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

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

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

By observing the Bollinger bands indicator patterns formed by Bollinger bands a trader can determine the direction in which the market is likely to move.

Bollinger Band Indicator Patterns & Continuation Stock Signals

Upward Trend

• During an upswing, the candlesticks 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 trend

Upward Stock Trend Strategy Using Bollinger Band Stock Strategy

Downward Trend

• During a down swing, the 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 trend

Downward Stock Trend Strategy Using Bollinger Band Stock Strategy