Bollinger Bands Part 2

In the following diagram, fig 4 we have at point 1, further examples of price leaving and re-entering the bands. At the arrows we have the more conventional use of the bands, signifying the drying up of volatility in the market. In this case at the close of the london market.

Fig 4.

Followed by a squeezing of the bands to create a ranging/side-ways market.
Fig 5

Finally. An opening & explosion of price, in this case following an extraordinary news announcement

Fig 6 

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