Bollinger Band

Bollinger Bands (which are named after their inventor John Bollinger, author and American financial analyst) are a statistical tool used in technical analysis of the Forex market and are used to assess the market volatility, or to indicate the intensity of the movements , in terms of trade.

 

When the market takes place a few exchanges, Bollinger bands tend to decline. On the contrary, when the trading volume increases, Bollinger bands tend to expansion.
phenomena

- Bollinger Bounce:
Looking at the graph, you will notice how the candles of the prices tend to reposition themselves within the bands, this phenomenon is called "bounce Bollinger".

- Squeeze:
When the market is in terms of trends and bands suffer a narrowing, or a squeeze, it can be a sign of an impending breakout.