#CurrencyPairPrediction The Bollinger Bands approach for currency pair trend reversals is a technical analysis strategy used to identify potential market reversals. Bollinger Bands consist of three lines: 1. Middle Band: A simple moving average (SMA) of the price (usually 20 periods). 2. Upper Band: The middle band plus two standard deviations. 3. Lower Band: The middle band minus two standard deviations. The key concept for trend reversal detection is when the price moves outside the upper or lower bands, signaling that the price may be overbought or oversold. When the price reaches these extreme levels, it often indicates that a reversal might be imminent, especially if the price starts to move back toward the middle band. Key signals for trend reversal: Price hits the upper band: Indicates potential overbought conditions, suggesting a reversal to the downside. Price hits the lower band: Indicates potential oversold conditions, suggesting a reversal to the upside. Squeeze: When the bands contract, it indicates low volatility, often signaling an upcoming breakout or trend reversal. The Bollinger Bands approach works well in combination with other indicators like RSI or MACD for confirming the reversal signals.