Bollinger Band

Derived from the original Bollinger bands.

The Bollinger Fibonacci ratios is a volatility based indicators but it does not use the standard deviations to calculate the width of the bands instead it uses a smoothed ATR that are multiplied with Fibo ratios of 1.618, 2.618, & 4.236.

The smoothed lines that are multiplied with Fibo ratios are then added or subtracted from the MA.

This forms 3 upper Fibonacci bands and Three lower Fibonacci bands

Middle band forms the basis of the trend.

Bollinger Bands Indicator - Bollinger Bands: Fib Ratios BTCUSD Indicator Analysis

BTCUSD Analysis and How to Generate Signals

This btcusd indicator used to determine point of support and resistance for bitcoin crypto.

The lines below represent support points while those above are resistance levels.

The outermost bands provide the strongest resistance/support.

Inner most bands provide least support/resistance.

The innermost band represents Fibonacci 38.20% retracement level

The second band represents Fibonacci 50 percent% retracement level

The outermost band represents Fibonacci 61.80% retracement level

The indicator is used to determine points where bitcoin price might reverse. (Bitcoin Price Pullback Levels)

When bitcoin price hits one of the lines and reverses then an entry or exit signal gets generated.

However, it is always good to combine the signal with other confirmation indicators such as the moving average to confirm the signal as shown below.

Bollinger Bands - Bollinger Bands: Fib Ratios BTCUSD Indicator Analysis - How Do I Draw Fib Projection?

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Bollinger Band

BTCUSD Analysis and How to Generate Signals