In a congesting market
Upper and lower bands act as S/R
Bands are usually horizontal
When bands narrow and constrict, watch for breakout! Watch for volume too.
Prices will break out into the band.
In a trending market
Bands open up to signal start of a move
Prices trade along the upper/lower bands (sloping), not S/R
When prices trade outside the band, it may be the end of the move soon, and prices will usually move sideways for a while to get back inside the band
Midband can serve as S/R
Rounded top/bot signals end of move (not trend)
The opposite side of the BB tends to curve inwards first in signaling end of move
When bands close up – possible congestion
When bands continue to slope – resumption of trend
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