Working with Bollinger Bands
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    Working with Bollinger Bands

    Bollinger band was developed by John Bollinger. But I would neither go in detail about its history nor about how it is calculated. I would try to put it as simple and abstract as possible and just discuss how we can use this tool in our trading.

    Bollinger bands indicates volatility : When there is little movement in the market the Bollinger band contracts and when the volatility in the market increases the Bollinger bands expand. Please look at the following picture below

    This is the image of the movement of Eurusd as on 6 th March 2015. Eurusd was battered badly as I had expected it. So the market was volatile. Still we can clearly find that when the bands when the market was quiet the bands are near while when the volatility increased the bands moved apart.

    This is almost all about the bollinger bands. We can use this indication to even time our entry and exit prices and to know when the prices may move out of the range or when a breakout is likely to happen.

    Usually when the bands move very close to each other it denotes that the market is preparing for a breakout soon.

    Squeezing and bouncing of the bollinger bands


    Squeezing of Bollinger bands : As I stated above when the bollinger bands squeeze it is likely that a breakout will happen soon. Usually if the bars break above the upper band then the prices may trend up. Similarly if the bars break below the lower band then the prices adopts a downward trend.

    I will illustrate this in the battering of eurusd on Friday.

    It is clear that every time the bars break the lower band the prices took a downward course.

    Bouncing of Bollinger bands : I like using this tool in ranging markets when a breakout or trend is not clear.

    The main idea here is that every time the price reaches the upper or lower band it tends to return to the middle.
    .This works well most of the time when the market is range bound and no major news or event or breakout is about to happen. Good way to grab some beautiful pips.Take a look at the following picture to understand it better.


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    This is informative post brother. Reading it has helped me to know the bollinger bands better and how we can use it in trading. Like moving average bolliner bands is an indicator of the trend. It can help us to determine the market trend and also calculate the volatility of the market. I usually use moving averages but I also sometimes use the bollinger band indicator.

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    Quote Originally Posted by ANANDCHENNAI View Post
    This is informative post brother. Reading it has helped me to know the bollinger bands better and how we can use it in trading. Like moving average bolliner bands is an indicator of the trend. It can help us to determine the market trend and also calculate the volatility of the market. I usually use moving averages but I also sometimes use the bollinger band indicator.
    Yes brother when we learn anything whether it is a new indicator, new strategy or new trading system it will contribute to improve our trading. When we learn about money management and risk management we know how we can work in Forex trading more safely and stay protected from big losses. After all success in trading is all about how well we know and understand the Forex business and the mindset or discipline with which we work here.

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    What a great thread sir, I have known the Bollinger bands to have its own tricks all the time, and the way the trader devotes to study it matter so well in trading it. The Bollinger bands are full of surprises, most especially in the lower risk they can work with in the regard of the bands they are trading with.

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    Quote Originally Posted by cozard007 View Post
    What a great thread sir, I have known the Bollinger bands to have its own tricks all the time, and the way the trader devotes to study it matter so well in trading it. The Bollinger bands are full of surprises, most especially in the lower risk they can work with in the regard of the bands they are trading with.
    Thanks a lot, sir. Bollinger bands is a tool that we can use in our trading. Using any tool depends upon how well the trader understands it and how well he can implement it in trading. It is not just using but using a tool well. The same stop loss can bring unnecessary losses to one trader and protect another trader from a big loss. Whether a trader is moving average expert or bollinger bands expert, it is his skills to use it profitably in trading.

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    Quote Originally Posted by PROPENSITY100 View Post
    Thanks a lot, sir. Bollinger bands is a tool that we can use in our trading. Using any tool depends upon how well the trader understands it and how well he can implement it in trading. It is not just using but using a tool well. The same stop loss can bring unnecessary losses to one trader and protect another trader from a big loss. Whether a trader is moving average expert or bollinger bands expert, it is his skills to use it profitably in trading.
    Indeed it is our skill which can help us to do trade with bollinger bands or any other kind of indicator. Using a trading tool or trading indicator is only profitable if we have a good skill to use it. Otherwise no matter which type of trading system we are using it will not work at all. This is a very good thread and you explained well about bollinger bands nice work.

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    Registered user Hukam's Avatar
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    Quote Originally Posted by forexlearner View Post
    Indeed it is our skill which can help us to do trade with bollinger bands or any other kind of indicator. Using a trading tool or trading indicator is only profitable if we have a good skill to use it. Otherwise no matter which type of trading system we are using it will not work at all. This is a very good thread and you explained well about bollinger bands nice work.
    Yes trading tools are very helpful we should keep it very simple mate, if you are not getting any good result by using any indicator or tool just change that and use other ones. I follow the same, When I not feel satisfy with any tool or indicator use then I not use it for trading. We should only use those tools or indicators which are best for our analysis or which suit to our trading system.

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    yes those should shows of the customs on strategy as trader to work of the use as to calls of the TP on middle level lines along with the further on consideration with the chance as defining of the deeper on confirmation by the use of other signals on defining options to put with the order.

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    Quote Originally Posted by forexlearner View Post
    Indeed it is our skill which can help us to do trade with bollinger bands or any other kind of indicator. Using a trading tool or trading indicator is only profitable if we have a good skill to use it. Otherwise no matter which type of trading system we are using it will not work at all. This is a very good thread and you explained well about bollinger bands nice work.
    Forex is an opportunity we can utilize only when we have the skills and what is needed to succeed here. Forex is the best online earning source I have discovered. It may also be for students and that means they need to know how to see to it that trading forex does not affect their studies. There are other get paid to do sites, if you can give it what it takes.

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    Quote Originally Posted by Abhishekwala View Post
    Forex is an opportunity we can utilize only when we have the skills and what is needed to succeed here. Forex is the best online earning source I have discovered. It may also be for students and that means they need to know how to see to it that trading forex does not affect their studies. There are other get paid to do sites, if you can give it what it takes.
    What is needed is the trader's work to understand this business well. Forex is true world wide business. Now all over the world people can work in Forex. It needs just internet connection to work in Forex. Any young and old people can do this business and can take this business as profession .

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