What Are Bollinger Bands?

mark004

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What Are Bollinger Bands?

Bollinger bands are an integral part of just about every charting system We have ever seen but many traders are unfamiliar with how to use them. The bands are plotted at a standard deviation (statistical term for measuring volatility) around a moving average. Typically the standard deviation used is 2.
A simple moving average in the middle. Most charting software defaults to a 20 period moving average.
An upper band calculated around a simple moving average plus 2 standard deviations.
A lower band calculated around a simple moving average minus 2 standard deviations.
For our examples we will use the most common setting of a 20 period simple moving average. This will give us 3 bands, the middle band of a 20 period simple moving average and the upper and lower bands calculated around the middle band with standard deviation of 2. The closing price is most commonly used to calculate the moving average.
The Squeeze
The squeeze (tightening) is a period of low volatility and often happens before a big move. It can also help identify potential breakout areas

Reversal
In conjunction with other indicators you can identify potential reversal points.

Trending Following
Although Bollinger bands will not tell you when the trend has started if you combine it with certain indicators they will confirm the trend.

Our Use Of Bollinger Bands
As we mentioned earlier Bollinger bands are not really meant to be used as a signal generating indicator but in conjunction with another indictors can be very useful. We like to use Bollinger bands and RSI together to generate possible buy and sell signals or to confirm overbought or oversold areas. When the RSI reads below 30 and price is touching or pushing through the lower band then we know we are oversold and We will either consider buying the market or close existing short positions.

Best Regards
Mark,
 
He keeps doing this. I'm waiting for the link spamming to start but thus far nothing. Just, well, this. Oddness.

I think given time the fractal wrongness will surface and I'll be forced to post the usual picture. Not yet though....
 
He keeps doing this. I'm waiting for the link spamming to start but thus far nothing. Just, well, this. Oddness.

I think given time the fractal wrongness will surface and I'll be forced to post the usual picture. Not yet though....
The links are being posted under his or rather 'its' other nick, see the earlier post 'biggest trading mistakes'. Why the f*** is this crap allowed to go on, pull yourself together T2W.
 
He keeps doing this. I'm waiting for the link spamming to start but thus far nothing. Just, well, this. Oddness.

I think given time the fractal wrongness will surface and I'll be forced to post the usual picture. Not yet though....

Yeah, I don't see the point if you're going to spam. It's obviously not a proper post. What legitimate members actually post like that?
 
Why are you posting this ?
you can get this out of any book

Indeed, or if you are genuinely interested go to the source and read John Bollinger's book. Not some half baked regurgitated cut and paste from some 3rd rate web site.
 
An increasing amount of non vendor badged fishing(phishing) spam is being posted on this site placing gullible newbies at risk. Luckily you guys are quick to nail it but what is T2W doing....bugger all it seems. Wonder if there are any serious trading forums out there where some ******* isn't trying to sell you the holy grail get rich quick scheme. Look you new guys/girls, if indicators brought riches we would all get rich but more is involved, much of it involves personal issues within yourself.
 
What Are Bollinger Bands?

Bollinger bands are an integral part of just about every charting system We have ever seen but many traders are unfamiliar with how to use them. The bands are plotted at a standard deviation (statistical term for measuring volatility) around a moving average. Typically the standard deviation used is 2.
A simple moving average in the middle. Most charting software defaults to a 20 period moving average.
An upper band calculated around a simple moving average plus 2 standard deviations.
A lower band calculated around a simple moving average minus 2 standard deviations.
For our examples we will use the most common setting of a 20 period simple moving average. This will give us 3 bands, the middle band of a 20 period simple moving average and the upper and lower bands calculated around the middle band with standard deviation of 2. The closing price is most commonly used to calculate the moving average.
The Squeeze
The squeeze (tightening) is a period of low volatility and often happens before a big move. It can also help identify potential breakout areas

Reversal
In conjunction with other indicators you can identify potential reversal points.

Trending Following
Although Bollinger bands will not tell you when the trend has started if you combine it with certain indicators they will confirm the trend.

Our Use Of Bollinger Bands
As we mentioned earlier Bollinger bands are not really meant to be used as a signal generating indicator but in conjunction with another indictors can be very useful. We like to use Bollinger bands and RSI together to generate possible buy and sell signals or to confirm overbought or oversold areas. When the RSI reads below 30 and price is touching or pushing through the lower band then we know we are oversold and We will either consider buying the market or close existing short positions.

Best Regards
Mark,



Another sub-prime crackpot claiming welfare from accross the pond! Climb back into your dumpster and stop pestering us all.
 
"What Are Bollinger Bands?"

now when I was a lad and twern't much brass to be had.Parents t'would always buy t'kid 2 pairs of outsized shreddies.Outsized so they had plenty o'room to grow into 'em afore they became too small for t'equipment. Now speaking t'equipment cos the shreddies were so big they'd normally jus fall down round t'knees and out would pop thee equipment.
So being right good problem solvers a solution to keeping the shreddies up was found using two pieces of elastic band and they became known as Bollinger Bands cos without them the old t'equipment would pop out jus like t'cork from a bottle of bubbly. Not that we could afford the bubbly ,but that's another story.
 
"What Are Bollinger Bands?"

now when I was a lad and twern't much brass to be had.Parents t'would always buy t'kid 2 pairs of outsized shreddies.Outsized so they had plenty o'room to grow into 'em afore they became too small for t'equipment. Now speaking t'equipment cos the shreddies were so big they'd normally jus fall down round t'knees and out would pop thee equipment.
So being right good problem solvers a solution to keeping the shreddies up was found using two pieces of elastic band and they became known as Bollinger Bands cos without them the old t'equipment would pop out jus like t'cork from a bottle of bubbly. Not that we could afford the bubbly ,but that's another story.

i don't understand, but i surely agree.
 
He posts this on all of the forums that I visit, and I am expecting some sort of sales message pretty soon.
 
An increasing amount of non vendor badged fishing(phishing) spam is being posted on this site placing gullible newbies at risk. Luckily you guys are quick to nail it but what is T2W doing....bugger all it seems.

just to let you all know that this guy had a buddy who was doing the ad spamming, he had his posts quite rightly deleted/edited, and been banned. on the other hand this one has not put a foot wrong to the guidelines with his posts. no invites, hooks or ads of any kind, i'm having real trouble in equating that to "phishing spam placing gullible newbies at risk." a great deal of time and effort goes into sweeping out the spam ads.

i think it's really unfair to say t2w is doing bugger all, admin are working hard at the moment to make sure mods have the tools to make life easier, recently they've introduced systems to make spam operations more difficult. they are also very active in recruiting more mods, there aren't enough of us to do the job effectively and admin recognise this.

sorry my post is off topic and bugger all to do with bollies it seems.
 
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