Bollinger Band BTCUSD Methods
- How Bollinger Band Works
- Bollinger Band Volatility Analysis
- Bollinger Bands Bulge & Squeeze
- Bollinger Bands Bitcoin Price Action in Trends
- Bollinger Bands Bitcoin Price Action in Ranging Market
- Bollinger Bands and Bitcoin Trend Reversals
- Bollinger Band Bitcoin Crypto Currency Strategy Summary
Bollinger Band Bitcoin Technical Indicator Strategy
Bollinger Band cryptocurrency indicator acts as a measure of volatility. Bollinger Bands technical indicator is a bitcoin price overlay indicator.
Bollinger Band indicator consists of 3 lines or bands: the middle band (moving average), an upper band a lower band. These three bands will enclose the bitcoin price & the bitcoin price action will move within these three bollinger bands.
Bollinger Band cryptocurrency indicator forms upper & lower bands around a moving average. Default moving average for bollinger bands technical indicator is the 20-SMA. Bollinger Bands cryptocurrency indicator use the concept of standard deviations to form their upper and lower Bands.
The example of Bollinger Bands cryptocurrency indicator is illustrated below.
Bollinger Bands Indicator - How to Trade Bitcoin with Bollinger Band Method
Because standard deviation is a measure of bitcoin price volatility and volatility of the btcusd market is dynamic, the bitcoin trading bollinger bands keep adjusting their width. Higher bitcoin price volatility means higher standard deviation and the more the bollinger bands widen. Low bitcoin price volatility means the standard deviation is lower and the bollinger bands contract.
Bollinger Band forex indicator use bitcoin price action to give a large amount of bitcoin price action movement information. The bitcoin price information given by the this bollinger bands indicator includes:
- Periods of low volatility- consolidation phase of the btcusd market.
- Periods of high volatility - extended trends, trending markets.
- Support and resistance levels of the bitcoin price.
- Buy and Sell points of the bitcoin price.
