How to Use Bollinger Bands

Better System Trader. Better System Trader is the podcast and blog dedicated to systematic traders, providing practical tips from trading experts around the world. In Nicks book, he uses period Bollinger Bands so we’ll do the same. The upper Bollinger Band will be 3 deviations from the central line, the lower Bollinger Band will be 1.

I honestly find it hard to determine when bitcoin is going to take a turn looking at the bands. In the above example, the volatility of the E-Mini had two breakouts prior to price peaking.

Bollinger Bands

Most technicians will use Bollinger Bands® in conjunction with other indicators, but we wanted to take a look at a simple strategy that uses only the bands to make trading decisions.

In the next article on the Bollinger Bands indicator, we will put all of this information together to illustrate a simple trading system using Bollinger Band analysis. Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.

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Provides insight into stock trends. Industry group and sector data updated daily. Complete access to our fully customizable charts including the full Bollinger Band suite of indicators, plus more than 50 indicators, TrendLines, Systems and Stops. These interactive technical analysis tools can be created and customized to suit your needs and preferences. Stocks that meet the criteria for each of the four trading methods.

Updated on a daily basis for both long and short positions. Read about the four Methods here. An extensive stock-screening program. Customize searches to fit your own criteria. Create a customized portfolio so you can review your holdings at a glance.