How To Create Profits with Bollinger Bands

[ChartSecret]

Bollinger Bands are famous technical tool, yet many traders fail to harness its full potential. Learn to trade it like a pro in this tutorial:
http://www.chartsecret.com/content/indicators-how-trade-bollinger-bands

 

[mikey109021]

well the site dont work.. acn u pls see..

 

[miskec]

It works for me, but the tutorial is quite simple, i've expected much more as you called it pro, you can find a similar one on my site :

Bollinger Bands are a tool of technical analysis which was invented by John Bollinger in the 1980s. Having evolved from the concept of trading bands, Bollinger Bands are an indicator that allows users to compare volatility and relative price levels over a period time. Basically, this tool provides a relative definition of high and low. By definition prices are high at the upper band and low at the lower band. This definition can aid in rigorous pattern recognition and is useful in comparing price action to the action of indicators to arrive at systematic trading decisions. When the market is calm, the Bollinger Band lines get closer together and when the market was changing Bollinger Band line expand.

You can read rest of the article at Bollinger Bands.

 

[SwingTrdr]

miskec, sometimes the wisdom and profits are in the simplest of things, rather in complex strategies that are hard to execute correctly.

 

[Pinalli]

The basic interpretation of Bollinger Bands is that, the prices tend to stay within the upper and lower bands. The Bollinger Bands have unique characteristic that the spacing between the bands varies based on the volatility of the currency prices. During high volatility periods, the bands widen to become more forgiving. Similarly during periods of low volatility, the bands narrow to contain currency prices. The bands are draw with two standard deviations above and below a SMA. They indicate a "sell" when above the moving average (or close to the upper band) and a "buy" when below it (or close to the lower band). The bands are used by some forex traders in conjunction with other analyses, including RSI, MACD, CCI, and Rate of Change.

 

[FXexpert]

Great info here, bb bands can be quite a useful tool.

 

[Pinalli]

Great info here, bb bands can be quite a useful tool.

yeh! BB are very important if you are scalping.

 

[AutoTrader]

Nice tut.
Pinalli - BB are useful for any trader and any timeframe! Even if you are a momentum trader you can gauge momentum with the middleband and if you are a reversal trader you can enter on the bands themselves.

It is a very powerful tool.

 

[Ary Barroso]

Well, BB is one of the most popular default trading tool; but we can’t rely on only BB since it works on mainly horizontal rangy market. For making consistent profit, we have to filter out our entry & exit level by multiple parameters.