Bollinger Bands, usually used as indicators that provide a way to trade using support and resistance.
Consists of Upper Band, Middle Band, and Lower Band.
Usually, the Upper Band will act as Resistance, while the Lower Band will act as Support.
When the Bollinger Bands contract, it indicates a market sideways and there may be the potential to change the trend.
When the Bollinger Bands expand, it indicates that the market is trending, that is, has a strong trend.
⦁ Seeing Trends Using Bollinger Bands
Uptrend: Candlestick will be above the Middle Band in the area marked in yellow.
Downtrend: Candlestick will be below Middle Band in the area marked in blue.
Continue studying the next chapter.
