dekac
06-04-09, 07:47 PM
Hi Traders
Hope you're doing well...
The Bollinger Band technical indicator is an analytical technique developed by John Bollinger. It helps those who use it compare volatility and relative price levels over a time period. The whole system involves three bands that are supposed to collectively show the majority of a security?s price action. These bands include a moving average, an upper band (the average plus 2 standard deviations), and a lower band (the average minus 2 standard deviations)...
The first thing to remember is that the Bollinger Bands only provides a relative definition of both high and low. You can take the definition and compare price action and indicator action, but only at relative levels. You can use these findings to make decisions about buying and selling. Keep in mind that volatility and trend are built into this formula, so you won?t need to deal with them otherwise....
Regards
dekac
Hope you're doing well...
The Bollinger Band technical indicator is an analytical technique developed by John Bollinger. It helps those who use it compare volatility and relative price levels over a time period. The whole system involves three bands that are supposed to collectively show the majority of a security?s price action. These bands include a moving average, an upper band (the average plus 2 standard deviations), and a lower band (the average minus 2 standard deviations)...
The first thing to remember is that the Bollinger Bands only provides a relative definition of both high and low. You can take the definition and compare price action and indicator action, but only at relative levels. You can use these findings to make decisions about buying and selling. Keep in mind that volatility and trend are built into this formula, so you won?t need to deal with them otherwise....
Regards
dekac