4 Different Moves Of Bollinger Bands In Technical Charts

Moves Of Bollinger Bands In Technical Charts. Technical chart showing different moves in Bollinger bands.

(2) Upper Band Is Moving Up & Lower Band Is Moving Flat Or Slightly Up

It is one of the most common moves of Bollinger bands in technical charts. In bullish continuations, the prices are trending in the buy zone i.e. between upper band & middle band.

During this phase, upper band is moving up & lower band is either flat or slightly up. This type of movement is likely to be continued up but in a slow pace for a time. Traders & investors can expect a slow but continuous move in upward direction for sometime.

On the other hand, in bearish continuations, the prices are trending in the sell zone i.e. between lower band & middle band. During this phase, lower band is moving down & upper band is either flat or slightly down.

This type of movement is likely to be continued up slowly for a time. Traders & investors can expect a slow but continuous move in downward direction for sometime.

[Read Also: 15 Characteristics Of Bollinger Bands In Technical Charts]

(3) Upper Band Is Moving Up & Lower Band Is Moving Down

It is one of the most typical moves of Bollinger bands in technical charts. In bullish continuations, the prices are approaching the buy zone i.e. between upper band & middle band.

During this phase, upper band goes up & lower band comes down. This type of movement is likely to be continued in a fast & furious pace for some time. It is the best continuation pattern for the bands.

It is marked by rapid expansion in the volatility of financial instrument. Traders & investors can expect fake breakouts at upper band. However, you are likely to generate some good profits on buy positions when executed properly.

On the other hand, in bearish continuations, the prices are approaching the sell zone i.e. between lower band & middle band. During this phase, lower band goes down & upper band moves up.

This type of movement is likely to be continued in a fast & furious pace for some time. It is the best continuation pattern for the bands in a bearish trend.

It is also marked by rapid expansion in the volatility of financial instrument. Traders & investors can expect fake breakouts at lower band. However, you are likely to generate some good profits on short positions when executed properly.

Image Source

Recommended Posts

More From GetUpWise

Leave a comment

Your email address will not be published.


*


More in Stocks & Mutual Funds
Profitable Tips For Day Trading With Bollinger Bands.
10 Profitable Tips For Day Trading With Bollinger Bands

Bollinger BandsĀ® are a great means to trade instruments. These profitable tips for day trading with Bollinger bands are unbeatable....

Close