$ADA 4 The hourly Bollinger Bands tightened, then broke above the upper band (0.2279) two days later.
The logic is simple: the Bollinger Bands use a 20-period moving average as the middle band, with the upper and lower bands set two standard deviations above and below it. Tightening bands indicate compressed volatility; the longer the compression lasts, the more pronounced the move tends to be once the market breaks out.
Next, watch two things: whether the bands continue to widen, and whether the middle band at 0.2201 provides support on a pullback.
Do your own research before trading.
The logic is simple: the Bollinger Bands use a 20-period moving average as the middle band, with the upper and lower bands set two standard deviations above and below it. Tightening bands indicate compressed volatility; the longer the compression lasts, the more pronounced the move tends to be once the market breaks out.
Next, watch two things: whether the bands continue to widen, and whether the middle band at 0.2201 provides support on a pullback.
Do your own research before trading.