An Extreme occurs when the fast Moving Averages (MA 5 or MA 10) break out and close outside the Top or Bottom Bollinger Bands, accompanied by a candle that also pushes outside the band.
Acts as the "Life Line" to identify the major trend. Uptrend: EMA 50 is below the Mid BB. Downtrend: EMA 50 is above the Mid BB. The BBMA Cycle: Entry Signals
A powerful signal showing the trend is strengthening. A candlestick closes outside the Top or Low BB 1.2.4.
Functions as a dynamic resistance level. It also signals market momentum when candles close outside of it.