Bollinger Bands – The Perfect Indicator for Bitcoin and Forex Trading

Bollinger Bands are a type of indicator that forms an envelope around price action on your chart. This band and the reaction of price to the upper and lower band can tell you a lot about price action.

As the name implies, Bollinger Bands ® are price channels (bands) that are plotted above and below price. The outer Bollinger Bands ® are based on price volatility, which means that they expand when price fluctuates and trends strongly, and the Bands contract during sideways consolidations and low momentum trends.