Bollinger on Bollinger Bands
This page was last edited on 31 August , at Liz Logan rated it liked it Dec 07,
John Bollinger, Bollinger on Bollinger Bands
Excellent book by the person who devised this indicator. Easy to read and understand. As the title and Author suggest - this is a book about Bollinger Bands written by the creator of BB's - The reason I bought this book is as a Professional trader I wanted to read 1st hand from the creator the useage of the bands.
To be honest for my style of trading using BB's will only complicate my style and possible results, however, as a learning tool on the maths and thinking behind the creation of the BB's then the book is and will always be on my bookshelf. People think that somewhere in trading and investing there's secret indicators and strategies people use to win - It's usually this very paranoia that is the self-destruct button for most traders.
You could create a strategy and set-up with ANY indicator and be successful - this book describes those popular with the use of BB's - which I have to say will work. Let me start with a general remark: The book is well written from the point of view of style and vocabulary. Too many trader-writers dont know how to use elementary grammatical components - like pronouns, adverbs, synonyms - in a propoer way, so that more often than not, readers hit on 'primitivisms' like: Tharp or Natenberg and a few others.
Some readers could rightfully object that the book could have been a little shorter, because of its emphasis on several decades of US financial history, but I for my part always like to have some perspective on the historical development of things, and so I personnally like these chapters.
The Bollinger bands as a volatiliy measure of the price action are presented pedagogically and in a coherent fashion, as a good textbook should do. Often readers maintain that it is easy to acquire the same knowledge by googling the subject.
I dont agree with that. Try learning physics for example, or options, on the net, on your own, without a mentor, and without even knowing where to begin, or which expressions to use. But once you have a good basic knowledge through a course or an introductory textbook, cum exercises, then and then only does the net become a real treasure trove, especially as you are then able to sift the good from the bad.
In this sense, a well written book like BonBB belongs on the shelf of every beginner-intermediate-trader. English is not my mother tongue.: Lots of technical realism, interesting.
One person found this helpful. Well I had high hopes for this, but I found it a real drag. BB's are a great trading tool and I use them, but it seems to me that the author has sat down and found as many market scenarios as can be found to fit BB's onto as an indicator. There are many ways BB's are useful and many market conditions where other indicators and mthods are better served, this book sells BB's almost as a brand not as one of many indicators. There is also a considerable amount of website TA and trading company recomendations in the book, so many in fact I began to wonder if they where mentioned for genuine advice or some kind of sponsorship deal!!
Dont get me wrong here if you want to learns BB's its the only place to go, but it could have been written in 25 pages without the slapping myself on the back undertone and prodigious filler. My tip, read the book, photocopy the 15 point basics from the inside back cover pin to your notice board, job done.
This is a thoroughly practical and readable book. I have read too many where one is encouraged to trade in a specific way and stellar results are guaranteed. Certainly I have found difficulty in extracting profits from some of the snake oil salesmen's ideas.
Bollinger does not sell snake oil. This book is different. It is neither an ego trip nor is it filled with endless pages of tables which serve no useful purpose, other than to make the book seem better value.
He makes plain, that one has to find a trading style to suit oneself, and is not overly proscriptive. All of his ideas are well laid out and easy to verify and equally applicable to stocks and commodities. He gives a number of formulae in the book, and these are easily translated into action, in say TradeStation, by seasoned professionals and beginners alike.
In short, this book is excellent, and I hope it will take it's place on the traders best sellers list. See all 10 reviews. Dispatched from the UK in 2 business days When will my order arrive? Home Contact Us Help Free delivery worldwide. Description 'All in all, "Bollinger on Bollinger Bands" is a gem This is the first comprehensive traders' guide to using Bollinger Bands from the man who created them.
It includes a handy Bollinger Bands reference card. Over the past two decades, thousands of veteran traders have come to view Bollinger Bands as the most representative and reliable tool for assessing expected price action.
Now, in the long-anticipated "Bollinger on Bollinger Bands", John Bollinger himself explains how to use this extraordinary technique to effectively compare price and indicator movements. Traders can look to this techniques-oriented book for hundreds of valuable insights, including: While John Bollinger would be the first to argue that no techniques exist for definitively determining these levels, "Bollinger on Bollinger Bands" presents an insider's examination of the one tool that if its widespread popularity is an accurate judge of its effectiveness comes closer than anything else.
Concise yet comprehensive, it is one of today's truly indispensable investment guidebooks. Here, the traditional, emotional approach to the markets is replaced with a relative framework within which prices can be evaluated in a rigorous manner leading to a series of rational investment decisions without reference to absolute truths' - From the Introduction.
In the s, market newcomer John Bollinger couldn't find a system of investment analysis to fit his belief that all market events exist only in relation to one another and that there are no absolutes.
So he created his own. That approach Rational Analysis led to the establishment of Bollinger Bands and ensured Bollinger's spot in investment analysis history. Now, in "Bollinger on Bollinger Bands", John Bollinger explains the market conditions that led to his initial discovery, and gives readers the inside story of the development and refinement of Bollinger Bands.
He then goes on to present a relative decision framework built around Rational Analysis and Bollinger Bands, an extraordinarily powerful combination of technical and fundamental analysis that answers the question of whether prices are too high or too low for virtually any security or market environment.
Bollinger Bands are a type of statistical chart characterizing the prices and volatility over time of a financial instrument or commodity, using a formulaic method propounded by John Bollinger in the s. Financial traders employ these charts as a methodical tool to inform trading decisions, control automated trading systems , or as a component of technical analysis. Bollinger Bands display a graphical band the envelope maximum and minimum of moving averages , similar to Keltner or Donchian channels and volatility expressed by the width of the envelope in one two-dimensional chart.
Two input parameters chosen independently by the user govern how a given chart summarizes the known historical price data, allowing the user to vary the response of the chart to the magnitude and frequency of price changes, similar to parametric formulas in signal processing or control systems. The chart thus expresses arbitrary choices or assumptions of the user, and is not strictly about the price data alone. Typical values for N and K are 20 and 2, respectively.
The default choice for the average is a simple moving average , but other types of averages can be employed as needed. Exponential moving averages are a common second choice.
Bollinger registered the words "Bollinger Bands" as a U. The purpose of Bollinger Bands is to provide a relative definition of high and low prices of a market. 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. In Spring , Bollinger introduced three new indicators based on Bollinger Bands.
Bandwidth tells how wide the Bollinger Bands are on a normalized basis. Writing the same symbols as before, and middleBB for the moving average, or middle Bollinger Band:. Uses for bandwidth include identification of opportunities arising from relative extremes in volatility and trend identification. The use of Bollinger Bands varies widely among traders. Some traders buy when price touches the lower Bollinger Band and exit when price touches the moving average in the center of the bands.
Other traders buy when price breaks above the upper Bollinger Band or sell when price falls below the lower Bollinger Band.