Did you know there is a variation of the Bollinger band indicator that can be very useful to identify the two main cycles of volatility any market goes through? This tool is a great visual aid to tell us if we are in an expansion or contraction phase in volatility. The indicator I am referring to is the Bollinger band width or BBW line. It essentially looks at the distance between the upper and the lower Bollinger band indicator. This is represented through the orange line in the upper pane in the EUR/USD 4h chart below. {chart} It’s quite simple to eye-ball the chart above and decipher by the orange line alone that ... (full story)