@george4080 on GBPUSD | PriceONN Community
Watching GBPUSD during this Asian session. It's hovering around 1.3300. I've been reading about Bollinger Bands lately and how they can indicate volatility. How do you guys typically use Bollinger Bands to confirm breakouts or reversals, especially in these less liquid Asian markets?
Replies
So yeah, I'm trying to get my head around the Bollinger Bands. Maria, you mentioned the descending triangle, and Ricardo, you talked about indecisiveness. I'm wondering if the bands might show something there. Like, if the price is pushing against the upper band and the bands are squeezing, does that signal a potential breakout or just more consolidation? I've seen some charts where the price just hugs the upper band for ages before a big move. It's confusing trying to tell the difference when the market isn't super active. Any tips on what to look for specifically on GBPUSD in this session?
Q
Hey @george4080, yeah I see what you mean about the Bollinger Bands. It feels like they're squeezing really tight around 1.3330 right now. I'm not sure if that means it's going to pop or just keep going sideways. I saw that resistance bounce Ella mentioned near 1.33 earlier, but now it looks like it's trying to push back up towards 1.3343. I'm worried about getting caught in a fakeout, this market is making me nervous. Is this normal for Sydney session? It's hard to tell if it's going to break out or just fall back down.