Bollinger Bands are techniques that are created in the 1980s by John Bollinger. After these 2 things about how to trade statistically, Kang Gun then wrote too much another statistical idea stuffs with another strategy and made people confuse and not consistent with his own strategy at all. Bollinger bands are the simple measure of standard deviation or volatility of a stock price.
I have simplified this strategy to maximal extent and even increased the profitability and proved it in backtest. The common actions you expect in Bollinger bands are the widening and tightening of the upper and lower bands. Bollinger himself stated that a touch of the upper band or lower band itself does not constitute a bollinger band signals of buy or sell.
Bollinger Bands Squeeze: The two bands are relatively compressed and tight, and we are closing monitoring the eventual breakout direction and volatility expansion. The bands are noted by three blue" lines presented in the above 5 Minute" chart for the EUR/USD" currency pair.
In a strong trending market, prices will be hugging the upper/lower bollinger band lines and you may find out you will get stopped out frequently if you are looking for reversals of that trend. If you use a disciplined approach when trading the Forex market there is little or no room for error.
When a candle closes outside" this level (below the upper 1.5-deviation band for a short position or above the lower 1.5-deviation band for a long trade) and the next candle also opens outside, the price will almost invariably continue to at least the middle line or the 34-period simple moving average, or SMA34 (whichever comes first depending on the position of the moving averages on the chart).
Suranga I've been testing the Bollinger Bands for two weeks now, using them mainly as a trigger in combination with median line analysis...the results are amazing. If it is a daily Bollinger set-up like the one I showed in the article, I will set me stop at the low of the previous candle and my target will be just under visit the up coming site opposite band.
However, the idea regarding how to interpret Bollinger Bands indicator is the same, no matter the time frame used. As well, when price breaches a band whether upper or lower while in a state of contraction, it can be a signal of a breakout. The Bolling Bands indicator is first explained and then the Stochastic Oscillator indicator.
Price needs to cross and trade inside of the upper bands (in an uptrend) or inside of the lower bands (in a downtrend). I will illustrate some of the common setups and what the bands can point out in the price action. Similar to the Bladerunner above, all that is required with this strategy is an effective set of graphs and price charts which comes with all reputable forex trading platforms nowadays.
I have simplified this strategy to maximal extent and even increased the profitability and proved it in backtest. The common actions you expect in Bollinger bands are the widening and tightening of the upper and lower bands. Bollinger himself stated that a touch of the upper band or lower band itself does not constitute a bollinger band signals of buy or sell.
Bollinger Bands Squeeze: The two bands are relatively compressed and tight, and we are closing monitoring the eventual breakout direction and volatility expansion. The bands are noted by three blue" lines presented in the above 5 Minute" chart for the EUR/USD" currency pair.
In a strong trending market, prices will be hugging the upper/lower bollinger band lines and you may find out you will get stopped out frequently if you are looking for reversals of that trend. If you use a disciplined approach when trading the Forex market there is little or no room for error.
When a candle closes outside" this level (below the upper 1.5-deviation band for a short position or above the lower 1.5-deviation band for a long trade) and the next candle also opens outside, the price will almost invariably continue to at least the middle line or the 34-period simple moving average, or SMA34 (whichever comes first depending on the position of the moving averages on the chart).
Suranga I've been testing the Bollinger Bands for two weeks now, using them mainly as a trigger in combination with median line analysis...the results are amazing. If it is a daily Bollinger set-up like the one I showed in the article, I will set me stop at the low of the previous candle and my target will be just under visit the up coming site opposite band.
However, the idea regarding how to interpret Bollinger Bands indicator is the same, no matter the time frame used. As well, when price breaches a band whether upper or lower while in a state of contraction, it can be a signal of a breakout. The Bolling Bands indicator is first explained and then the Stochastic Oscillator indicator.
Price needs to cross and trade inside of the upper bands (in an uptrend) or inside of the lower bands (in a downtrend). I will illustrate some of the common setups and what the bands can point out in the price action. Similar to the Bladerunner above, all that is required with this strategy is an effective set of graphs and price charts which comes with all reputable forex trading platforms nowadays.