Vantage FX UK (www.vantagefx.co.uk) show traders how Bollinger Bands can be used to gain more insight when analysing Forex charts.

Bollinger Bands

Bollinger Bands are volatility markers which placed either side of a moving average. These bands get wider when volatility increases and narrow when it decreases. Some traders choose to buy when the price hits the lower band and then exit the trade when it reaches the central moving average.