Bollinger Bands

[miskec]

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.

 

[rathcoole_exile]

try studying Keltner Channels and then find yourself a technique combining KC and BB - it's easy to spot and a VERY powerful technique ....

 

[N Rothschild]

or you could just tell him

 

[Chorlton]

try studying Keltner Channels and then find yourself a technique combining KC and BB - it's easy to spot and a VERY powerful technique ....

Hi Rathcoole,

I think I know which technique you are hinting at regarding BB and Keltner bands. From my limited testing on Equities on higher timeframes (EOD and Weekly) I didn''t think they were that powerful in determining future price movements.

Maybe they are more responsive and accurate on lower timeframes such as Intraday.... Based on your comment you obviously find they offer an edge so can I ask what timeframes you trade?

Cheers,

Chorlton

 

[rathcoole_exile]

usually 610 tick...

I learned this from John Carter and he uses 512 tick, 5 minutes, 60 mins and 120 mins, plus occasionally the daily

ref your comment about the lack of power of the technique, I use it slightly differently to how JC used to teach it, which sometimes meant catching the trade a little late. But even he has now started doing what I do - bracket:
Note the consolidation channel and set resting Buy & Sell Stops Entries to catch the breakouts/breakdowns from the quiet period.

 

[new_trader]

try studying Keltner Channels and then find yourself a technique combining KC and BB - it's easy to spot and a VERY powerful technique ....

my point is that as an experienced motorcyclist, one learns never to trust ANY indicator

trust only what you see in terms of vehicle movement (price action)

indicators, any indicators, just lull one into a false sense of security and sooner or later you'll get squashed when the old man in the volvo, smoking a pipe in his deerstalker hat,drives straight on and not left as indicated

How did you ever make it to the role of advisor? You haven't got a clue what you are talking about. It's obvious. Maybe you need to read another glossy trading book. Hypocrite

 

[rathcoole_exile]

How did you ever make it to the role of advisor?

the badge is yours any time you want it boy

You haven't got a clue what you are talking about. It's obvious.

With regard to what ? What does my post about BBs and KCs prove about my lack of knowledge ? Clue about what ? indicators ? lack of indicators ? your post doesn't make sense

Maybe you need to read another glossy trading book.

I assume this jibe is because I recommend Carter's book for newbies ? Check out my badge - it says "advisor" - that's what I try to do, advise people.

Hypocrite

My position towards all newbies and indicator junkies will always be that less is more and that reliance on indicators will eventually lead to a disaster.
But here the OP wrote an authorative piece about BBs so he either
a) a knob who posted this as a prelude to some scammy sales pitch or
b) he is genuinely interested in BBs as a trading technique

I gave him the benefit of the doubt and tried to engage in an adult discussion and tried to advise (damn, there's that word again !) him of a way of potentially improving his use and understanding of BBs rather than simply relying on them as an off-the-shelf indicator.
It appears that my attempt to a have a rational, adult debate with someone has offended you.
Tough, get over it.
And don't write anything to me in your homo ink colour ever again you freak

Anyway, nice attempt N_T, you've obviously been waiting impatiently for some time to strike back at me since I humiliated you a couple of times elsewhere.
Good effort so far, but since all I tried to do was advise a board member, a little offensive in the end....

 

[new_trader]

the badge is yours any time you want it boy


With regard to what ? What does my post about BBs and KCs prove about my lack of knowledge ? Clue about what ? indicators ? lack of indicators ? your post doesn't make sense


I assume this jibe is because I recommend Carter's book for newbies ? Check out my badge - it says "advisor" - that's what I try to do, advise people.


My position towards all newbies and indicator junkies will always be that less is more and that reliance on indicators will eventually lead to a disaster.
But here the OP wrote an authorative piece about BBs so he either
a) a knob who posted this as a prelude to some scammy sales pitch or
b) he is genuinely interested in BBs as a trading technique

I gave him the benefit of the doubt and tried to engage in an adult discussion and tried to advise (damn, there's that word again !) him of a way of potentially improving his use and understanding of BBs rather than simply relying on them as an off-the-shelf indicator.
It appears that my attempt to a have a rational, adult debate with someone has offended you.
Tough, get over it.
And don't write anything to me in your homo ink colour ever again you freak

Anyway, nice attempt N_T, you've obviously been waiting impatiently for some time to strike back at me since I humiliated you a couple of times elsewhere.
Good effort so far, but since all I tried to do was advise a board member, a little offensive in the end....

I suspect you are confusing my ignoring you and your book learned advice/opinion as a sign of humiliation. To clear up what I said earlier, you haven’t got a clue about trading, period, apart from what you read in Carter's book. I haven't been waiting to strike back because I actually make an effort to avoid your posts, all of them, because you bore me. I would only reply if I feel it would be beneficial to the absolute minority but in most cases I can't be arsed, like I said before. This thread caught my attention because I genuinely thought you were making critical comments about the use of BB and was surprised to see what you actually wrote.

 

[rathcoole_exile]

because you bore me. ]

well do to me what i've just done to you and put me on ignore

goodbye you weird twisted obnoxious freak

 

[N Rothschild]

where did you learn to trade new_trader? just woke up one day and knew it all?

 

[rathcoole_exile]

never mind, as he always does, he's managed to derail a thread from it's original topic.
I suspect a deep inner resentment and jealousy, since he patently can't trade, that leads him to sabotage thoughtful discussions on the subject

 

[rathcoole_exile]

where did you learn to trade new_trader? just woke up one day and knew it all?

i thought Soctrates imparted that knowledge into him in a similar way that a fighter plane is refueled in the air.
but through the erse ?

 

[the blades]

never mind, as he always does, he's managed to derail a thread from it's original topic.
I suspect a deep inner resentment and jealousy, since he patently can't trade, that leads him to sabotage thoughtful discussions on the subject

Can't trade? Have you seen his journal? He'd notched up about 7 points in a month the last time I looked. More than enough to treat himself to one of the pizza's he delivers on the night shift....

But he does write in purple.....

UTB

 

[karl6666]

Can't trade? Have you seen his journal? He'd notched up about 7 points in a month the last time I looked. More than enough to treat himself to one of the pizza's he delivers on the night shift....

But he does write in purple.....

UTB

 

[jeffsmith]

Bollinger bands are actually indicators as to the volatility of a particular security. As a result, for trading purposes, one would want to look at the activity of trading within the bands in conjunction with another tool, such as the Relative Strength Indicator, to properly undertake investment decisions.

 

[rathcoole_exile]

not necessarily Jeff.
they can serve as a stand alone indication that price has extended beyond an average range, thus raising the possibility that price may return to Mean

 

[Rossini]

Can't trade? Have you seen his journal? He'd notched up about 7 points in a month the last time I looked. More than enough to treat himself to one of the pizza's he delivers on the night shift....

But he does write in purple.....

UTB

Sh1t, a whole 7pts!! Im sure he said he trades at £10pp so thats 70 quid! (my maths is improving I know).

Your wrong Blades thats about 7 pizza's, a good months work me thinks....

Seriously N_T FK off and let traders share their views in piece, there is no need for you to be here.

 

[Chorlton]

usually 610 tick...

I learned this from John Carter and he uses 512 tick, 5 minutes, 60 mins and 120 mins, plus occasionally the daily

ref your comment about the lack of power of the technique, I use it slightly differently to how JC used to teach it, which sometimes meant catching the trade a little late. But even he has now started doing what I do - bracket:
Note the consolidation channel and set resting Buy & Sell Stops Entries to catch the breakouts/breakdowns from the quiet period.

Rathcoole,

Thanks for your views....

 

[karl6666]

R_t

Why doesnt anybody like you R_T is it because you shout
Cheer up old boy there are terminally ill kids with cancer in the local hospitals, keep things in perspective. Forums are for a 'bit a crack' and learn stuff

K

 

[welshman]

hello all
i like this thread guys straight to the point i m a newby been at it about 5 months now losing more than i m winning that s for sure

what i am trying to understand in bb moving averages etc etc could one of you guys please explain in a manner that a stupid welsh boy will understand please and also explain how i set them up
cheers