So great on making 5th grade! You make each time next grade continuing more tools to your trader’s toolbox.
What’s more traders’ toolbox?
Compare with building a house of trading. You can’t use hammer on screw, is it not? or would use buzz saw driver in nails. It is there are proper tool for every situation.
In trading also indicator best used environment in particular situations. The better adapt every changing market environment with you have more tools.
Few specific trading environment tools cool too if focusing on. Having specialist in installing electricity, plumbing in house is good, like cool to a Moving Average expert or Bollinger band.
Million different ways in grabbing some pips!
You learn about indicator in this lesson, each have new tool add toolbox of yours if you think.
There is no need to use all these tools, but always having nice plenty of options, one of you understand comfortable enough master on own if you find. Enough about tools which already now!
It is used in measure the market’s volatility.
The market is quite by telling the little tool basically or may be market is loud! When market quite, bands contract when market is loud, bands expand.
When price is quite you can notice on chart, together bands are closed. Price moves up bands spread a part.
Its boring for you going in history of Bollinger band, mathematical formulas calculated, behind it and forth but really not feel typing it out like.
There is no need to junk in honesty. More important we show some ways can apply Bollinger bands to trading.
Note: if you want to know calculations of Bollinger band, and then go to www.bollingerbands.com.
Should know that Bollinger bands price tends returns in middle of bands. Behind Bollinger bounce is whole idea.
These bounces reason is Bollinger bands act support of resistance levels.
The stronger of these bands are tend to be a longer frame time. Developed system of many traders has that thrive on bounces strategy is best use when market ranging is not clear trend.
Market does trend by using way Bollinger bands.
Self-explanatory pretty when Bollinger squeeze. Bands squeeze together, means breakout is get ready to be happened.
Candles started to break out top band, then move usually continue go up. Candle start to be break out down band, price usually continue go down.
If say up than you are correct!
This is what typical Bollinger of squeeze works.
You to catch and move as soon as possible by strategy designed. Like these setups won’t occur every day, few times in a week seeing at 15 minute chart you can probably spot them.
Many thing you can do in Bollinger bands, but the most 2 common strategies are associated. It is the time to put your tender’s of toolbox before move to next indicator.