Bollinger Bands are a type of statistical chart characterizing the prices and volatility over time of a financial instrument or commodity, using a formulaic method propounded by John Bollinger in the 1980s.

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When it comes to the dynamic support and levels of resistance, trades have one additional option that they can use as dynamic support and level of resistance and that option is called Bollinger Bands. The strategy of Bollinger Bands is based on Bollinger Bands indicators and in the world of binary options trading, this strategy is considered as one of the most effective strategies. This strategy provides traders with the opportunity of when to buy Call binary options and when to actually buy Put binary options. This strategy is also used in order to predict the trading range in directions up and down as well as the speed in which the price will change.

In binary options trading market, the price corridor is changing constantly and it hardly ever has one and the same value. With the increase in the volatility, the price corridor also expands. This moment is a very dangerous moment for a trader to start trading or to enter the market. On the other hand, the best moment for a trader to enter the market is actually the moment when the price corridor starts to narrow. In that case, that is, in the narrow price corridor if it happens that the price increases that is a signal for a trader to buy Call binary options and if the price actually decreases in the narrow price corridor, that is the sign for a trader to buy Put binary options.

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