Understand and Read Bollinger Band in Forex

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There are 4 stages of the Bollinger Band movement that you must understand so that we can determine the strategy that will be used in each condition, that is:

1. Normal condition

Normal bowling conditions with band width tend to be the same from time to time. With Mandatar shape but not narrowing, or tilting according to this direction with a degree of slope below 45 degrees.

In normal bowling conditions the market moves back and forth between gangs. This means that when the market touches the band outside the band, then the market will return to Kitangah.

The Bollinger Band is also referred to as Dynamic Support / Resistance.

In normal bowling conditions, an appropriate strategy is scaling the scalp.

2. Phase break setup

The preparation phase of this separation is characterized by Bellinger, which tends to narrow or flat. The reason may be because the market is really quiet, or because sellers and buyers are waiting.

The strategies that can be used in this case are Strategy Trap (TRIPING)

3. Break the stage

The break conditions are marked with the upper and lower bands extending away. This happens because the system is membludakia so the market power is very large. Market impact will move straight.

In the break-out phase there is no possibility of reversing the trend normally, because it is close.

An appropriate strategy under these circumstances is the penetration strategy.

4. Break the normalization phase

This stage is finding balance and test direction. Desinella strength of the direction in the test.

This stage is characterized by range ranges that move in line with the trend that has been formed. The effect of the graph will level off or shape wedges pattern. In such a case should not enter the market, but wait until the following signal appears

5. Close closing phase

In the final stage of this break you will narrow the bowling band. The trend of the market at this stage is usually flat or reverse direction which is newly formed.

In these circumstances you must wait to confirm the signal that will appear next.

This is how you read Bollinger Bands, which initially serve to measure the crowd market. In its development the trader can determine the direction of the market coming from just reading the Bollinger bands as described above.