Bollinger Bands indicator

Bollinger Bands indicator

Bollinger Bands

 

Bollinger Bands are used to measure the level of Volatility. When prices tend to be silent line Bollinger Bands will be docked and when the price of the active lines Bollinger Bands will widen. Bollinger Bands can serve as Support & Resistance where prices tend to move back and forth between the upper limit and lower limit (Bollinger Bounce). Bolinger Bands is helpful to know whether the price is silent or active.

Bollinger Bands are an indicator that the beginning can not be used as an indicator action.Harus diapakai along with other indicators. Specify one of the indicators is best for you as an indicator of action, some good action indicator is the RSI, Stochastic or momentum. select according to your trading style.

In general, the price will move in the belt, but may also price moves outside of the belt. This may mean there will be a reversal or even reverse the ongoing trend strengthening. To find out we can see the action indicator that we use.

Determination of the period in the Bollinger Bands are also influential here. The smaller the period is used then the width of the belt will be smaller, and vice versa.

Bollinger Bands are generally composed of three lines, namely Upper Line, Botom Line, and the center line between the Upper Line and Bottom Line (line Moving Average )

This indicator creator (John Bollinger) said that the most interesting thing in analyzing the use of Bollinger Bands is to notice how each person using it. Although there are some standard rules in the Bollinger Bands, but could have been a trader with another trader has a different way and a different use in the use of Bollinger Bands.