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Technical Indicators

Bollinger Bands

Usage of Bollinger Bands is based on the fact that prices usually remain within the limits of upper and lower borders. The variable width of Bollinger Bands is caused by volatility of prices

Methods of usage:

  • Sharp changes of the price take place after the line narrows.
  • If prices cross the borders of the line the current trend would stay.
  • When lines are narrow: The price movement started from one border usually reaches the other border.
Bollinger Bands

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