How do Bollinger Bands help track volatility?
Bollinger Bands consist of a moving average line and two volatility bands, one above and one below.
When the price stays close to the lower band, this may reflect dominant downward pressure. But it doesn't mean the price is certain to rebound.
In a low-liquidity market, large trades can also cause Bollinger Bands to change quickly. Therefore, it's best to combine this indicator with volume and trend structure.
#BollingerBands #SHELL #TradingEducation
Bollinger Bands consist of a moving average line and two volatility bands, one above and one below.
When the price stays close to the lower band, this may reflect dominant downward pressure. But it doesn't mean the price is certain to rebound.
In a low-liquidity market, large trades can also cause Bollinger Bands to change quickly. Therefore, it's best to combine this indicator with volume and trend structure.
#BollingerBands #SHELL #TradingEducation