Bollinger Bands. - Rob Booker

Bollinger Bands – page 2Bollinger Bands.________________________________________Using Bollinger Bands is quite easy. These Bands predict price movementbased on market volatility. When price is more volatile, the Bands are wider.When the market is quiet, the Bands tighten together. Price tends to moveback to the center of the Bands. As you can expect, if price tends to moveback to the center of the Bands, then what should happen on the far rightedge of the chart above?When price breaks outside a Band, it signals a buy or sell order. In thechart above, you see on the far right edge that the candles jump outside ofthe top Band. Because the candles exceeded the top Band (by quite a bit), we