$ADA The daily Bollinger Bands narrowed for 8 days before price broke below the lower band (0.2225).
The principle is straightforward: the Bollinger Bands use a 20-period moving average as the middle band, with the upper and lower bands set 2 standard deviations above and below it. Narrowing bands indicate contracting volatility; the longer the contraction lasts, the bigger the move tends to be once the market picks a direction.
The two key things to watch next are whether the bands continue to widen and whether a rebound to the middle band at 0.2464 turns it into resistance.
#ADA
The principle is straightforward: the Bollinger Bands use a 20-period moving average as the middle band, with the upper and lower bands set 2 standard deviations above and below it. Narrowing bands indicate contracting volatility; the longer the contraction lasts, the bigger the move tends to be once the market picks a direction.
The two key things to watch next are whether the bands continue to widen and whether a rebound to the middle band at 0.2464 turns it into resistance.
#ADA