Bollinger Bands Bitcoin Indicator Bulge and Squeeze Technical Analysis
The Bitcoin Bollinger Bands are self adjusting which means the bands widen and narrow depending on bitcoin trading price volatility.
Standard Deviation is the statistical measure of the bitcoin trading price volatility used to calculate the widening or narrowing of the bitcoin trading Bollinger bands. Standard deviation will be higher when bitcoin trading prices are changing significantly and lower when the btcusd trading market bitcoin trading prices are calmer.
- When bitcoin price volatility is high the Bollinger Bands widen.
- When bitcoin price volatility is low the Bollinger Bands narrows.
The Bollinger Band Squeeze
Narrowing of bitcoin trading Bollinger Bands is a sign of bitcoin price consolidation & is known as the Bollinger band squeeze.
When the Bollinger Bands cryptocurrency indicator display narrow standard deviation it is usually a time of bitcoin trading price consolidation, and it is a cryptocurrency signal that there will be a bitcoin trading price breakout and it shows bitcoin traders are adjusting their trade positions for a new move. Also, the longer the bitcoin trading prices stay within the narrow bands the greater the chance of a bitcoin trading price breakout.
Bollinger Squeeze - The Bollinger Bands Squeeze - How to Crypto Trade Bollinger Bands Squeeze
The Bollinger Bulge
The widening of Bollinger Bands is a sign of a bitcoin price breakout & is known as the Bollinger Bands Bulge.
Bollinger Bands that are far apart can serve as a cryptocurrency signal that a bitcoin trend reversal is approaching. In the Bollinger bands cryptocurrency indicator example illustrated below, the bitcoin trading Bollinger bands get very wide as a result of high bitcoin trading price volatility on the down swing. The bitcoin trend reverses as bitcoin trading prices reach an extreme level according to statistics and the theory of normal distribution. The "bulge" predicts the change to a crypto downward cryptocurrency trend.
Bollinger Bulge - The Bollinger Bulge - How to Crypto Trade Bollinger Band Bulge
