Strips of Bollinger show the force through two important characteristics. In the first, they show the basic axis of a range of a trend in the same way, as the price or sliding averages. In the second, in process of the movement they compress or extend. Interaction between these two forces shows unique figures when bars pass through their borders. Especially well work with strips the Japanese candles. For example, punching the compressed strip, effectively signals about a short-term turn.
Strips of Bollinger are bent in reply to price movements. These waves predict, as the trend will far leave before the basic tendency will return the price to the central axis. Difficult relations develop between a direction of a price strip and its compression. For example, the trend tends to do a respite when strips are compressed against it. A wide experience is required to predict definitive influence of strips on the price, but the effort of that cost. More than any other tool, strips of Bollinger precisely define the latent fluctuations and signal us, whether the door to profit is opened.
Strips can fluctuate about local maxima or minima, and then to recede in proportional recoil, to begin a new impulse of a trend. Or they can enter into the wide channel, wandering back and forth without a certain direction. Movement often fades, when the price rises in a falling strip or decreases in the growing. Lateral strips can appear both in quiet and in trend market. The price often is not in a condition to reach a new maximum or a minimum, while strips will not extend to clear way. Often strips of Bollinger predict time better, than the price.
The strip top rises to level of a day maximum. This divergence signals about possible break after the price at last will be developed from the strip basis. Observe of strip inclination, when bars come to the important levels of a maximum or a minimum. It often shows time and the force necessary to push the price through a support/resistance barrier.
The skilled eye observes compression of strips in real time to estimate force of purchase or the sale, demanded to push the price. They extremely well work at repeated testing of the important maxima or minima. When the market, at last, breaks, extending bars often shoot in strip edge where congestion forms a flag. Strips are strongly compressed round narrowing of the price in the lateral markets.
Strips of Bollinger warn in advance about trend change. Sharp price movement compels strips to extend. When the active market, at last, becomes lateral, strips are slowly compressed to the price. Passes time and doors are closed on fast vertical movement. Experience allows the swing-trader to estimate quickly demanded time before strips will be compressed and accordingly to react.
For those who want to participate in forex trading must start from learning the basics of currency exchange market to make sure you do not have problems with this industry.