Vantage FX UK (https://www.vantagefx.co.uk/) explores recent AUS-USD pairs using Bollinger Bands and explains why the AUS is at an all time low. Subscribe to this channel now!
Bollinger Bands
This is an indicator that consists of a band around a moving average. The band is based on standard deviation, which means it responds to market conditions. The more volatile a market is, the wider the band will be. The less volatile, the tighter. This can indicate that when the bands are in a 'low volatile' position, it is possible for volatility to occur particularly on a price breakout. Bollinger bands can also be used to identify a potential overbought or oversold market, where the price would be closer to either the upper or the lower band.