The Basics of the Bollinger Band Technical Indicator in Forex Markets...

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

c0nundrum · 08-04-09, 10:53 AM

And you forgot to mention Bollinger Bands serve as Support and Resistance and can highly enhance your trades' quality and success. I should write an article about it sometime...

realFXpips · 08-04-09, 09:38 PM

dekac,

I was expecting to read something on how to apply BB in trading.
Just for the benefit of newbies.

Cheers!

06-04-09, 07:47 PM	#1
dekac Junior Member Join Date: 19th June 2007 Posts: 23	The Basics of the Bollinger Band Technical Indicator in Forex Markets... 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

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

08-04-09, 10:53 AM	#2
c0nundrum Junior Member Join Date: 7th April 2009 Posts: 7	And you forgot to mention Bollinger Bands serve as Support and Resistance and can highly enhance your trades' quality and success. I should write an article about it sometime...

08-04-09, 09:38 PM	#3
realFXpips Junior Member Join Date: 27th June 2008 Posts: 21	dekac, I was expecting to read something on how to apply BB in trading. Just for the benefit of newbies. Cheers!