Bollinger Bands Indicator with Filled Color
The Bollinger Bands Indicator with filled color is a variation of the standard Bollinger Bands, often enhanced with shading to visually represent the area between the upper and lower bands. Trading signals using this indicator can be generated based on price interactions with the bands: a buy signal occurs when the price touches or bounces off the lower band, particularly if accompanied by a shift in momentum or confirmation from other indicators, suggesting potential upward movement. Conversely, a sell signal may arise when the price hits or breaks through the upper band, indicating potential overbought conditions. Filled colors can help traders quickly assess the volatility range, with the area between the bands representing different market conditions, aiding in decision-making for entries or exits. Always combine these signals with sound risk management practices.