Referring to the shape of normal Bollinger in agreement with the normal flow of interest, we get the live band Bollinger
horizontal phase => = phase Landscape > parallel Phase => Phase pursed = > horizontal Phase
essentially as long as there is no interference from the outside, that interest will flow grooves forming Bollinger perfect reasons as above normally correspondent.
From that moment, the Bollinger form not perfect, for example, as a phase, we can estimate the shape of Bollinger bands later like this way of seeing a phase to form a pattern Bollinger bands are perfect.
the main rule of Bollinger bands:
- When the chart horizontally Bollinger band was leveled
- When the picture starts to move, Bollinger bands began expanding
- When the graph moving faster and faster, Bollinger bands widen
- When the stock moves more slowly, Bollinger became narrower
Thus, the direction of the market further by Bollinger bands:
- When Bollinger bands flat, then the graph moves in the direction of the curvature of the center line Bollinger
reason :. the middle line of Bollinger is the average prices candlestick element in a given period. When the price of the last candlestick is higher, the average value also rose up. Began to rise in the average price shows interest began to grow. Thus, the following chart continue growth
-. When Bollinger band widening, the graph will continue to move to the middle Bollinger Bollinger on the opposite side (point A) has begun to reverse direction.
The reason: The point A or point where the band Bollinger band, which is directed opposite to the middle turn Bollinger in the direction of Bollinger environment, it is the form of narrow Bollinger before. This shrinkage means interest began to wane. Interest shrinkage will definitely make the table move in the opposite direction to the previous direction
-. If after emerging point A and point B appears on the market will reverse the direction or horizontally. What is the clear market movements were halted.
The reason: When the upper and lower band Bollinger leads to Bollinger band average width are increasingly pinches. This shows the convergence of interest before getting smaller, so the graph will then reverse direction as a form of change of any kind of interest or horizontally like an endless form of interest before.
- If after emerging point A, the market continues to move in the direction previously, the market will continue to move until the emergence of point B
the reason: the emergence of point that has showed interest began to decline, so it should reverse the direction or a horizontal graph. But when it is the graph continues to move straight, it means downsizing of interest was only temporary. It might be no additional interest in common with the previous interest. That is to say an interest in returning to enlarge. Expanded this interest will the price continues to move in the direction of the type of interest.
- After emerging point B, the market will reverse direction and horizontally with Bollinger bands are plucked.
The Bollinger band has a pattern and may be provided to further shape as we can develop a following maximum movement. So if the painting as a vehicle that runs on track, support the resistance as a sign-rambunya, Bollinger Band marks the path that the transom running on the track were reasonable.
Another interesting fact of the Bollinger band which can be used as a reference motion market:
- If the tape Bollinger expand significantly, while the table short mileage and easy correction
- If the Bollinger band widening Bollinger band slowly over movement of the intermediate curve market will happen long.
-. Graph move from one side to the other Bollinger Bollinger band other conditions Bollinger is wide, then the price will reverse the direction
As graphics road markings, the Bollinger bands continue to be outside the graphics card and direct its corresponding marks.
The more special than this band of Bollinger Bands Bollinger are patterns occur repeatedly in the same form, and tend to be more permanent than a pattern graph it -even model or other indicators. Bollinger bands thus form the next is more easily recognized by the recognition phase of what is happening and what the next phase. With so by reading the forms of the Bollinger band we might have a map image pattern will be formed.