Regards Freedom
Friends of Freedom Fx ... This time I would like to invite you to learn how to read Bollinger bands indicator in Forex trading application
Bollinger bands are one indicator of existing Deffault in metatrader4 that we use in the trade
There are several patterns and conditions Bollinger band indicator that we must understand
Among them are
Normal conditions
In normal situations characterized by Bollinger band width in the same band that tends to move from time to time so that the market price will move back and forth between the Bollinger bands.
Bollinger bands shape in normal situations marked with mandatar form but not narrowed, or tilted in accordance with the trend slope under 45
Bollinger bands so that the band will be a dynamic point of support or resistance.
In these conditions the most suitable trading technique is trading Scalping Technique
Look at picture
Appear in the picture that under normal conditions the price will move between the upper and lower bands Bollinger bands and price tend to be middle Bollinger band position in this situation pergerakanya and then tape outside the Bollinger band became a point of support or resistance bands at the position of the upper Bollinger
Preparation situation breack
In the preparation phase breack is often characterized by narrowing of the Bollinger band pattern, this could be due to market really lonely or because anyway between sellers and buyers alike waited so voltality of price does not happen there
Look at Picture
Break Situation
At the break marked by the widening phase condition between Bollinger band tape away from each other is because the transactions are very overcrowded and under these conditions is not likely to happen reversal
Trading strategy in this condition is a breakout trading strategy
Look at the picture
Break normalization condition
This condition is a condition of seeking balance and trends in the condition of a situation like this trend actually tested.
In this condition will be marked with tape running direction of the Bollinger band line with the trend that has been established impact graphics will run horizontally.
Such conditions should not enter the market first
Break Closing Conditions
This condition is usually characterized by the pattern of bands traveling narrowed Bollinger bands mutual
The direction of the market in this condition will usually be flat and there is the possibility of the opposite direction to the price trend has just completed the establishment
in these circumstances should you wait for a confirmation signal to enter the market next
Surely this indicator was originally used to measure the strength of a trend in the market and in its development, a trader will be able to detect where the direction of the next price just to use traditional Bolinger band
Thus this and read how to use Bollinger bands in a variety of market conditions and now you already know
How to use and read the The Bolinger bands inicator and hopefully this article provides benefits to your trading success
Regards Freedom
