If you use Bollinger bands?

From the outset I want to say that Bollinger bands developed in the early 1980s by John Bollinger, a very effective aid in your trading arsenal. I personally used for years when I acted professionally, but have since relaxed using them in favor of a different methodology. This does not mean by any stretch of imagination can Bollinger bands are not useful and helpful in your efforts to negotiate, and there are days when I'm hard to get a reading on the marketAction that I, Bollinger bands for more clues in stock market days to be added, especially if the price action very ambiguous.

As I drifted to static theories of the dynamics of the volatility of volatility more, especially chaos theory and fractal formations centered, I gradually by Bollinger Bands. I would also point out that John Bollinger among the first to implement a system that was greeted with a dynamic volatility trading technicalBands.

Indicator Chart

Like most of the channels, the band covers a specific period (many people use 20 times, but there are variations on much shorter and longer on the system) and market movement is fitted with standard deviations usually two deviations standard than the average trend. closing period above or below the diversion channel two shows essentially a state of overbought or oversold market. A closer look at a chart with Bollinger Bands are a highCorrelation between the channel closes above or below the range, or, as sometimes called, the envelope Bollinger, and a reversal of price action.

If you use Bollinger bands?

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There is a degree of mathematical knowledge necessary to establish a standard deviation of the basis for the calculation, but it's not really necessary because the majority of programs, trade Bollinger bands have formula, together with some parameters, the user can right button Integrated mouse in the chart. With a simple click and some selections of time periods ishave the Bollinger band channel on the card. Most formulations of the system of Bollinger, a simple moving average as the middle line on which to calculate the range of standard deviation. Although I have read several articles that suggest a different formulation of the moving average, exponential smoothing suggests some other factors, for the intermediate-axis, determined by the canal.

I advise everyone to a channel bandwidth of Bollinger on your paper and pop upThe time and get an idea of ​​this useful indicator. Once, when I have a difficult time getting a feel for the market, I have to win often provide indicators to better understand the days of price action.

If you use Bollinger bands?

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