Arman77
New Member
Bollinger Bands – Points of Support and Resistance
Bollinger Bands could be the most effective forex trading strategy for support and resistance. The bands begin to constrict when the Bollinger squeeze occurs, which often signals that a breakout is about to occur.On a graph, the move will often continue to rise as the candles begin to break out above the upper band. Then the price tends to continue to decline if candles begin to break out below the bottom band.
The Bollinger Bands’ channel width measures price volatility. In other words, the Bollinger Bands’ breadth increases as a forex pair’s price experiences a string of large movements.
In contrast, the channel gets narrower when there are tiny price changes – as seen at 20:30 on the above chart. Momentum is extremely strong when the price is consistently testing one of the upper or lower bands, or breaks through one of them.
