TRADING FOREX

There are 4 Phase Movement Bollinger bands that we must understand that we can determine the strategies that will be used in each of these conditions, namely:

1. Normal Conditions

The condition is characterized by normal bollinger band width tends to the same band from time to time. Mandatar the form but not narrowed, or tilted in accordance with the trend slope below 45 degrees.

Bollinger on normal market conditions will move back and forth between the ribbon band. Meaning when the market touched the ribbon outside the band, then the market will come back ketengah.
So the ribbon Bollinger Bands are also referred to as dynamic support / resistance.
At Bollinger normal conditions, the strategy is suitable for use scalping strategy.

2. Preparatory phase break

Break preparation phase is characterized by Bollinger who tend narrowed or horizontally. The reason could be because the market is really quiet, or for sellers and buyers are waiting.
Strategies that can be used in this condition is a trap strategy


3. Phase Break

Break condition is characterized by the upper and lower bands widen away. This occurs because the flood of orders that market power is so great. Impact on the market will move straight.

In phase does not break the trend reversal may occur normally, except occurs convergent.

Suitable strategy in this condition is a breakout strategy.

4. Phase Normalization Break

This phase is to find the balance and strength testing trend.Disinilah a trend in the test.

This phase is characterized by ribbon bands corresponding trend is moving in the direction that has been set up. Impact chart will form a pattern horizontally or wedges. At kondidi like this should not go to the market, but rather wait until the next signal

 5. Closure phase Break

In the closing phase of this break Bollinger bands will narrow. Market direction in this phase are usually flat or contrary to the trend that has just formed.

In this condition should wait for confirmation of the signal which will appear later.

That's how to read Bollinger bands, which at first is used to measure the market crowd. In its development, a trader can determine the next direction of the market Bollinger Bands only read as above.