Bollinger Bands are a good visual way to identify and analyze trending markets.
Bollinger Bands Figure 5
Figure 5 – Price behavior of the Euro-Dollar during trending periods.
In figure 5, these indications of trend reversal are marked as red arrows. Also notice, how in mid-December, a trader following these two guidelines would have closed his position (because of market noise) earlier then the actual top to the market, but not by much.
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