Bollinger Band Price Action in Trending Markets

Bollinger Bands 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 figure out the direction of the price trend. In an upwards trend Bollinger Bands indicator will clearly show and illustrate the direction of the price 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 Bollingers indicator patterns formed by Bollingers a stock index trader can determine the trend direction in which the market is likely to move.

Bollinger Bands Technical Indicator Patterns and Continuation Index Signals

Upwards 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 market trend

Upward Index Trend Strategy Using Bollinger Bands Stock Indices Trading Strategy

Downward Trend

• During a down swing, the candles will stay within the MA & the lower band.
• Prices that close below the lower band are a signal of bearish continuation signal.
• Prices can hug/ride the lower band during an downward trend

Downward Index Trend Strategy Using Bollinger Bands Stock Index Trading Strategy

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