Having evolved from the concept of trading bands, Bollinger Bands can be used to measure the highness or lowness of the price relative to previous trades. The default choice for the average is a simple moving average, bandes de bollinger forex other types of averages can be employed as needed. Usually the same period is used for both the middle band and the calculation of standard deviation. By definition, prices are high at the upper band and low at the lower band.
This definition can aid in rigorous pattern recognition and is useful in comparing price action to the action of indicators to arrive at systematic trading decisions. Other traders buy when price breaks above the upper Bollinger Band or sell when price falls below the lower Bollinger Band. When they are far apart a period of high volatility in price is indicated. Traders are often inclined to use Bollinger Bands with other indicators to see if there is confirmation. Tag: Bollinger Bands Trading, Bollinger Bands Strategies, Ma Bollinger, Bollinger Band trading trend, Bollinger Bands scalping.
Forex Exclusive Bollinger Indicator MT4 has been developed based on the trader’s top popular Bollinger Band indicator. The latest development comes with the application of advanced algorithm. Forex Exclusive Bollinger Indicator aims to detect overbought and oversold conditions of the market. As price doesn’t move straight forward always, it moves like a wave most of the time. So, if you can correctly determine the high and low of the waves based on overbought and oversold condition of the price, you’ll easily be able to make your way to achieve trading success.
This indicator is specially engineered for scalpers who want to depend on a reliable tool to detect the swinging points at lower time frame. You’ll be able to use its full version on any currency pair across the market. Upper Band: The top channel of the indicator is known as Upper Band. This band signals the area of overbought market.
Usually when price hits this band, traders looks for sell opportunity matching with overbought condition. Lower Band: The lowest channel of this indicator is the Lower Band. This band defines the area of oversold market. Typically, when price visits this band, traders looks for buy opportunity according to the oversold condition of the price. Middle band: The channel between Upper and Lower Band is called the Middle band. It directs the momentum or trend direction.