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What are the common signals of the Bollinger Bands indicator?

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What are the common signals of the Bollinger Bands indicator? in Forex Advertisements_xx

1. Under normal circumstances, the direction of the middle line of the Bollinger Bands may represent the general trend of the foreign exchange market.

2. When the Bollinger Bands are in a state of accelerating tightening, it indicates that the market may reverse the signal. At this time, it is recommended that investors combine several different technical indicators to analyze and judge at the same time. If other indicators have no obvious sell signal, it may only indicate a continuous signal.

3. If the exchange rate price keeps touching the upper line and often breaks the upper line, it means that the market price is in an uptrend, and the same is true for a downtrend.

4. When the market is in a period of consolidation, Bollinger often tightens and the moving average tends to stabilize. However, when the Bollinger Band shrinks faster and faster, it must be combined with other indicators to make a comprehensive judgment, and at the same time pay close attention to the changes in the news, which often indicates a breakthrough in the market.

5. When the Bollinger Band has been in a state of expansion for a period of time, the market may be in a consolidation period, or it will reverse, and the possibility of maintaining a continuous state is relatively small.

6. If the daily chart is gradually approaching the upper line of the Bollinger Band and is above it, it can often be judged that the market is in an uptrend and strengthening. The market is in a downward trend.

The trend of Bollinger Bands plays a role in predicting changes in the market. It is often possible to use Bollinger Bands and KDJ indicators together to make judgments more accurate.


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#1 - October 14, 2022, 09:03:15 AM

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