Forex : Technical Indicators : Bollinger Bands

I Talked in previous article about Moving Average Indicators you can read it through this link

.Today I will explain to you Bollinger Bands and how to use it in Forex trading

Bollinger Bands Indicator

Function : Confirm the trend and measuring the degree of market instability

Simply this indicator use in to say to us : Is the market quiet or there are swings in prices movements

: (Band Function (The Difference Between The Two Lines of Bollinger

Bollinger Indicator has band top line , bottom line and middle line -

It provides us a signal : Is the currency pair traded at the higher prices or lower prices -

It provides us : Is the currency pair will continue in his trend or maybe will reverse -

It provides us the degree of market instability depending on the difference between the bands -

This indicator is provided on Metatrader program , you can add it by clicking on insert then click on trend then click on bollinger bands

?When The Market Is Quiet

Simply the market will be quiet when the difference between the two lines of bollinger bands are so closer form each other and the bollinger will be tight

At the quiet market that Bollinger Bands move like resistance and support levels

The Quiet Market we called confined market between limited range of prices

We buy at support line (the bottom bollinger line) and we sell at the resistance line (the top bollinger line) and the take profits are small at the rang of 10 to 30 points for the one deal

?When The Market Is Unsteady

The Market will be unsteady when the difference between the two lines of bollinger bands are apart away each other and the bollinger will be wide

.At the unsteady market the Bollinger Bands lines open widely

?How To Use Bollinger Bands in Your Trade

There are many ways to use Bollinger to open new deals

: Saw Way

This way is available only during quiet market

At This way we must focus on Bollinger middle line and the place of current price from that line that mean we must know when the price will reverse to the middle between the two lines of Bollinger

We buy at the bottom bollinger line and take the profit at returning to the middle

We sell at the top bollinger line and take the profit at returning to the middle

: The Candle And The Bollinger Way

Buying Signal

.We buy if the trend is rise

.Green Candle appeared higher than middle bollinger line

Then Green Candle appeared higher than top bollinger line and the entry will be with the price of the second green candle opening

Selling Signal

We sell if the trend is fall

Red Candle appeared lower than middle bollinger line

Then Red Candle appeared lower than bottom bollinger line and the entry will be with the price of the second red candle opening

: Bollinger Juice Way

The Entry way with bollinger juice way appears when that form consists on the chart as below

If you saw this form on your chart ,that mean breakout will happen

Buying : If the candle consists above of top bollinger line ,that mean the price maybe continue at rising and we should buy with the new green candle directly

Selling : If the candle consists under of bottom bollinger line ,that mean the price maybe continue at falling and we should sell with the new red candle directly