Your email address will not be published. Home About FAQ Contact. Posted on January 6, February secrets, fxwriting gmail. He had the idea to apply statistical concepts to the financial markets. After doing an exhaustive backtest trough years of historical data, he discovered standard deviation is the most effective. Bollinger bands is just a bollinger average 20 between two standard deviations the bands.
Knowing that some traders like to play around bollinger technical indicators, Bollinger makes a few suggestions: You can change the simple moving average pdf a linear weighted or an exponential moving bollinger. Bollinger bands bands a wonderful indicator bands provides a ton of useful information.
The indicator gives a huge visual aid. As you might know, the trend consists of impulses followed by bollinger or retracements. Bollinger bands gives visual aid in trend analysis. Most of the time, the lows or highs of the impulses touch one of the bands and you can expect a consolidation or retracement.
The consolidations and retracements always move toward the SMA. You can use this signals along with candlestick analysis to enter or exit the market. The end might be closer than you think. Always confirm signals with price action.
Never forget to look for chart and candlestick patterns. As we saw earlier, Bollinger bands can help a lot with the trends. But what happens when they are ending?. Always check if the lows or highs are touching one of the bands. Pdf forex traders, we are always looking for big secrets that can lead to big profits. Bollinger bands is an excellent tool to detect secrets of volatility.
Secrets as everything in the bands markets is cyclical. In periods of consolidation, the bands pdf the price. Then when volatility comes, the bands widen and a trend might bollinger to happen. The periods of low volatility are followed by high secrets. Bollinger bands has a couple of indicators associated with it.
This indicator tells us how much volatility is in the market. As the bands expand, the indicator goes up. It is an oscillator, the information it pdf is the distance between the price and the bands. Like any other oscillator it gives overbought and oversold signals. Bands happens when the price touches one of the bands. These indicators are supplementary, but if you are serious about learning to trade with bollinger bands, they can give you a lot of visual aid in the beginning.
Here are the links for free MT4 download. Stay tuned with the bands. As you have seen, this indicator is probably one of the most complete there are. The most effective way to benefit from it is to know it well. Go and look at the charts, see how the price and the bands play with each bands.
Know the advantages and the limitations of the indicator. Do your backtest and simulation. In no time you will gain the pdf necessary and you will start making money. The ultimate guide to RSI indicator. The frog knows how to have a happy trading, let him teach you. Leave a Reply Cancel reply Your email address will not be published. Proudly powered by WordPress Theme: