USD's Bollinger bands are narrowing

Russell Shor, CFTe, MFTA FXCM

The above is a daily chart of the USDOLLAR. We have added a standard Bollinger band to the chart. We note that the Bollingers are starting to narrow (green rectangle). Generally, markets, by their nature, cannot stay at “rest” for very long. Therefore, the narrowing of the bands is usually the proverbial calm before the storm i.e. it often precedes explosive moves. Unfortunately, the Bollinger don’t tell us the direction of these moves; only that they are due.

Author

Russell Shor, CFTe, MFTA

FXCM

Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna

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