Vantage FX UK (https://www.vantagefx.co.uk/) looks in detail at the current trends and activity on GBP-USD pairs (aka the Cable) using Bollinger bands. Subscribe to this channel to never miss a chart analysis video!
Bollinger Bands
This is an indicator that has a moving average at the centre with a band around it. The band is responsive to market conditions; in a market of volatility the bands will widen, whilst in a market of lower volatility the bands will narrow. Traders can use this as an indication of whether a break out might occur when a market moves from low volatility to high volatility. As a price approaches the upper band, some will also consider the market to be overbought or vice versa.
