Fidelis Capital Markets Bollinger Bands http://www.fideliscm.com/
The technique involved in Bollinger band is nothing it’s the overlaying of the three bands. The upper Bollinger band, the middle Bollinger band and the lower Bollinger band.
The middle Bollinger band is simply the simple moving average. The upper and lower Bollinger band measures the deviation. The Bollinger Bands are so strong in diagnosing the trends and the reversals.
The bands expand and contracts with the price action. These bands quantify the volatility and can be added to the chat so that it can help to spot when the big price moves are likely to occur.
Always remember that when you notice the market is slow and it makes a narrow range a breakout that can be of a big trend on the way. With the help of the range you can directly predict the direction of the breakout.
A Bollinger band also helps the traders in showing the reversal signals. A nice reversal sign can be formed when a candlesticks breaks out the one of the bands either upper band or the lower band.
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