Trading techniques for the opening and closing of the Bollinger Bands in practical scenarios. After a period of price increase or decrease, the opening of the upper and lower bands of the Bollinger Bands begins to contract, indicating reduced price volatility, inactive market conditions, and scarce trading volume. The market is likely entering a consolidation phase, and there may be a future re-selection of the direction to break through.
Investors should closely monitor trading varieties with contracting Bollinger Bands, as a trending market is brewing. Once the trading volume suddenly increases, the opening of the upper and lower bands of the Bollinger Bands may initiate a new market trend.
