Click to enlarge
Bollinger BandWidth is a particularly useful indicator for trading forex that is closely related to its volatility-indicating cousin, the Bollinger Bands. Whereas the Bollinger Bands are overlaid directly on top of price, as shown on the accompanying EUR/USD daily chart, the Bollinger BandWidth indicator usually resides either vertically above or below the price pane, also as shown on the chart. What does the Bollinger BandWidth indicator do? For more on using Bollinger BandWidth in forex trading, please click here.
James Chen, CTA, CMT