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Bollinger Bands
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Bollinger Bands is a trend indicator and is used to signal a high or low level of volatility.

 

Bollinger Bands


In order to calculate the indicator value you should calculate the double standard deviation of the movement for the settlement period (for example, take the 5-day) and postpone the relevant points above and below on the display.
Bollinger Bands as a result will be an envelope. With an increase in volatility will be expanded. With decreasing, it will be narrowed. Strong contraction - is one of the signs of low volatility.

Output abroad upper bands of Bollinger Bands is a signal to sell, under the lower band is to buy. But sometimes it does happen, that is "false" breakdown, when the price of currency only "tried" the level and rolled back. Of course, you can work on and against the trend, but there must be very careful, since the sample may be "false". And it is fraught with the loss of your deposit.

 
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