Bollinger bands are an indication of channels.
Bollinger Bands allow traders to predict “bounces”. There are three bands: the high band, low band and intermediate band. Bands are important indications as they allow you to view rebounds.
The intermediate band is a strong indicator of the trend, the breaking of this band with the volume usually leads to a higher or lower on the high band or low band.
A take profit can be placed on the upper band or lower while the stop loss can be placed a few pips under the position, either above or below the intermediate strip.