Bollinger Bands are Forex trading indicators that were first developed by John Bollinger during the 1980s. Bollinger bands enable traders to know if a currency price is high or low. The upper band is the criterion for high prices, while the lower band is for low prices. Traders can use this indicator to recognize different Forex trading patterns and it is also useful to incorporate the use of this indicator in Forex system trading.Bollinger bands use the standard deviation measure, which is used to figure out the spread of prices around the "true price". Bollinger bands will expand and contract as the currency price pattern expands to dynamic figures or contracts to close figures.
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