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Bollinger Bands – Spotting volatility like a pro
Bollinger Bands might sound fancy, but they’re basically a volatility radar for crypto traders. They help you see when a coin is trading calmly or getting ready for a big move.
How it works
Imagine Bollinger Bands as a rubber band around the price. This band expands when the market is wild and contracts when things are quiet. It consists of:
A middle line (the moving average) – the coin’s average price over a set period. An upper band – the price’s “ceiling.” A lower band – the price’s “floor.”
When prices move close to the upper band, the asset might be overbought (too expensive). When it touches the lower band, it could be oversold (too cheap).#BOLLINGER #Barn #BTCNextATH?
Bollinger Bands might sound fancy, but they’re basically a volatility radar for crypto traders. They help you see when a coin is trading calmly or getting ready for a big move.
How it works
Imagine Bollinger Bands as a rubber band around the price. This band expands when the market is wild and contracts when things are quiet. It consists of:
A middle line (the moving average) – the coin’s average price over a set period. An upper band – the price’s “ceiling.” A lower band – the price’s “floor.”
When prices move close to the upper band, the asset might be overbought (too expensive). When it touches the lower band, it could be oversold (too cheap).#BOLLINGER #Barn #BTCNextATH?
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