Forex Fury

One of my favorite technical indicators is of course the Bollinger Band. It offers insights on market volatility, allowing me to see whether the market is filled with traders or rather quite by assessing the distance between indicator lines. The wider the distance, the more market movements are to be expected. This simple technical indicator is very powerful, especially when you combine the information with other resources from technical and fundamental indicators.

One of the best moves a Bollinger Band makes is called the Bollinger Squeeze. When you see one, you can expect some serious profits for sure. Before I explain to you what the Bollinger Squeeze is all about, keep in mind that with the Bollinger Band on you will see that the price tends to move towards the center of two indicator lines.

When the price reaches upper or lower line, it will return to the center of it by nature.

During certain moments you will be able to see how the Bollinger Band tends to squeeze, forming tight space between indicator lines. This is a great opportunity, since it is the perfect setup for the Bollinger Squeeze. Monitor the chart closely to catch possible price break. If you see the price going over the top line, you can be almost certain that the market will make a move upwards, and vice versa.

When you do see a price break, you can expect huge price movements – sometimes more than 100 pips, depending on any fundamental – and you can easily make money from it from as early in the movement as possible.