The Ichimoku Cloud is a comprehensive forex indicator that provides trend direction, support/resistance, and momentum signals. In this guide, we’ll explore how the Ichimoku Cloud works and how to use it for effective trading strategies.
Bollinger Bands are a volatility-based technical indicator developed by John Bollinger. They consist of three lines:
Bollinger Bands expand and contract based on market volatility:
A Bollinger Band Squeeze occurs when the bands contract, indicating low volatility and potential breakout.
Bollinger Bands can indicate overbought and oversold conditions:
Combining Bollinger Bands with the Relative Strength Index (RSI) can improve trade accuracy:
✅ Pros:
❌ Cons:
Bollinger Bands are a versatile tool for volatility measurement, trend detection, and trade setups. When used correctly, they help traders identify breakout opportunities and market reversals with high accuracy.
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