6 Questions
Which of the following best describes the potential price reversals mentioned in the text?
A signal of overbought or oversold conditions
What does it mean when the price moves near or touches the upper band?
The price is likely to reverse and start falling
What does it mean when the price moves near or touches the lower band?
The price is likely to continue falling
Which of the following best describes how Bollinger Bands indicate higher volatility?
The bands widen
What does it suggest when Bollinger Bands narrow?
Lower volatility
What is the main purpose of Bollinger Bands?
To measure price volatility
Test your knowledge on potential price reversals and their significance in technical analysis. Learn about the signals of overbought and oversold conditions when prices move near or touch upper or lower bands.
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