HOW TO TRADE FOREX WITH BOLLINGER BANDWIDTH TECHNICAL INDICATOR ~ forex trading companies in new zealand
We already know that the Bollinger Band indicator is driven by the volatility. Bollinger Bandwidth is an indicator that also measures the volatility as Bollinger Band does. When the Bollinger Bandwidth is at its lowest low value for a certain period of time, it indicates the presence of a squeeze.
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A squeeze can be considered as the calm before the storm, so when the bandwidth is at the lowest low level for a certain period, it signals an upcoming breakout.
Bollinger Bandwidth does not suggest any entry or exit price level rather it explains the strength of the trend and probable breakout. Bollinger suggests that the entry and exit signals should be confirmed by the other indicators, chart patterns breakouts and divergence and convergence.
In fine, a Bollinger Bandwidth should not be used to get entry or exit price level. It should only be used to determine the volatility. It is an auxiliary technical indicator to assist other technical indicators.
Dear Traders, if you have any question about Bollinger Bandwidth technical indicator you can ask me in the comment section below. You can also share your technical analysis technique with Bollinger Bandwidth.
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