Trading with the Bollinger Bands How To at FinGad.com

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Categorie: Equities
Submitted 8 months ago by

Denese

Bollinger Bands are a technical analysis tool that in the 1980s, John Bollinger evolved from the concept of trading bands. “What they do is answer the perennial question of whether prices are high or low on a relative basis. Armed with this information, an intelligent investor can make buy and sell decisions by using indicators to confirm price action.” John Bollinger. This article is not intended to explain the theories behind the Bollinger Bands, for that you can visit John Bollinger’s site at http://www.bollingerbands.com/services/bb/?page=1 it is rather intended to show you how I use them in my trading strategies. I use the bands to help determine entry and exit points and I find them to be the most useful indicators of all. Whatever charts you use there will be a choice of indicators. Once you choose the indicator the variable can be changed according to your preference. I generally change the MA preference from the default of 20 to 13. It narrows the bands and has worked better for me, but there is no strong theory behind it. Below is the chart with the bandshttp://s3.amazona... More...

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#1 | Narasimhan @ 8 months ago Owner at Krish Systems User Rank : 1905 Portfoilo Balance: $498,940.00 Comment Rating: 0 Flag Comment Spam | Miscategorized | Prohibited: Thanks for this piece. Bollinger ban is for those who go for less complicated and visual trading methods.
#2 | Vtcastle @ 8 months ago User Rank : 532 Portfoilo Balance: $12,365.00 Comment Rating: 0 Flag Comment Spam | Miscategorized | Prohibited: Hey Denese, Got any other indicators that you use? I like the Fast Stochastic, the Ergodic Candle Oscillator and the traditional MACD. I toss in the Short Interest Ratio for the complicated trades.
#3 | Denese @ 8 months ago User Rank : 93 Portfoilo Balance: $63,300.00 Comment Rating: 0 Flag Comment Spam | Miscategorized | Prohibited: Simple and Visual - that's me :). I have used Fast the Stochastic and MACD, but have not found them to be a reliable indicator, as they lag too much. I'd love to see how you use them Matt.

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