Author Topic: Bollinger Bands  (Read 3486 times)

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Toshi

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Bollinger Bands
« Reply #-1 on: December 27, 2009, 04:54:03 PM »
Developed by John Bollinger, Bollinger Bands allows technical analyst to compare volatility and relative price levels over a period time. Bollinger Bands are envelopes which surround the price bars on a chart.

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Bollinger Bands
« Reply #-1 on: December 27, 2009, 04:54:03 PM »

Toshi

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Re: Bollinger Bands
« on: December 27, 2009, 04:59:13 PM »
Construction of Bolinger Bands

Bolinger Bands are plotted two standard deviations away from a simple moving average. Because standard deviation is a measure of volatility, the bands adjust themselves to ongoing market conditions. They widen during volatile market periods and contract during less volatile periods. Bollinger Bands are, essentially, moving standard deviation bands.
Bollinger Bands are sometimes displayed with a third center line. This is the simple moving average line. Mr. Bollinger recommends using a 10 day moving average for short term trading, 20 days for intermediate term trading, and 50 days for longer term trading.
The standard deviation value may be varied. Increase the value from 2 standard deviations to 2-1/2 standard deviations away from the moving average when using a 50 day moving average. Conversely, lower the value from 2 to 1-1/2 standard deviations away from the moving average when using a 10 day moving average.
However defaults are 20 DMA and 2 standard deviations.


Toshi

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Re: Bollinger Bands
« Reply #1 on: December 27, 2009, 05:06:35 PM »
Technical Analysis using Bolinger Bands.

Bollinger Bands do not generate buy and sell signals alone. They should be used with another indicators.
This is because when price touches one of the bands, it could indicate one of two things. It could indicate a continuation of the trend; or it could indicate a reaction the other way. By themselves they do not tell us when to buy and sell.That relative definition can be used to compare price action and indicator action to arrive at rigorous buy and sell decisions.
The default parameters of 20 periods for the moving average and standard deviation calculations, and 2 standard deviations for the bandwidth may be varied for the market.
The average deployed should not be the best one for crossovers. Rather, it should be descriptive of the intermediate-term trend.
If the average is lengthened the number of standard deviations needs to be increased simultaneously; from 2 at 20 periods, to 2.5 at 50 periods. If the average is shortened the number of standard deviations should be reduced; from 2 at 20 periods, to 1.5 at 10 periods.
Bollinger Bands are based upon a simple moving average. This is because a simple moving average is used in the standard deviation calculation and we wish to be logically consistent.
Make no statistical assumptions based on the use of the standard deviation calculation in the construction of the bands. The sample size in most deployments of Bollinger Bands is simply too small for statistical significance.

Toshi

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Re: Bollinger Bands
« Reply #2 on: December 27, 2009, 05:10:12 PM »
Technical Analysis Using Bollinger Bands & RSI

Bollinger Bands, when combined with RSI, they become powerful. RSI is an excellent indicator with respect to overbought and oversold conditions.
1)When price touches the upper band, and RSI is below 70, we have an indication that the trend will continue.
2)When price touches the lower band, and RSI is above 30, we have an indication that the trend will continue.
3)If we run into a situation where price touches the upper band and RSI is above 70 approaching 80 we have an indication that the trend may reverse itself and move downward.
4)On the other hand, if price touches the lower band and RSI is below 30 approaching 20 we have an indication that the trend may reverse itself and move upward.

Toshi

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Re: Bollinger Bands
« Reply #3 on: December 27, 2009, 05:26:49 PM »
Use of Bollinger Bands for confirmation of Price Patterns

Bollinger Bands can also be used to clarify pure price patterns such as "M" tops and "W" bottoms, momentum shifts, etc.
Price can, and does, walk up the top Band and down the bottom Band.

Double bottom buy (W):
A double bottom buy signal is given when prices penetrate the lower band and remain above the lower band after a subsequent low forms. Either low can be higher or lower than the other. The important thing is that the second low remains above the lower band.
The bullish setup is confirmed when the price moves above the middle simple moving average.

Double top sell (M):
A sell signal is given when prices peak above the upper band and a subsequent peak fails to break above the upper band. The bearish setup is confirmed when prices decline below the middle band.
Sharp price changes can occur after the bands have tightened and volatility is low.

Offline Kamran

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Re: Bollinger Bands
« Reply #4 on: January 14, 2010, 11:38:09 AM »
You can download this book from the following link the author is John Bollinger it self


http://www.4shared.com/file/187961942/409ccdc2/BOLLINGER_ON_BOLLINGER_BANDS__.html

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MAV

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Re: Bollinger Bands
« Reply #5 on: January 14, 2010, 06:35:22 PM »
This is an inefficient download link leading to a poor quality download size of more than 20MB.
Download the ebook at 2.66 MB. See:

http://pakinvestorsguide.com/index.php/topic,473.msg14346.html#msg14346.
 

You can download this book from the following link the author is John Bollinger it self


http://www.4shared.com/file/187961942/409ccdc2/BOLLINGER_ON_BOLLINGER_BANDS__.html

Remember me in your prayers

Offline Ahmedkhan

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Re: Bollinger Bands
« Reply #6 on: October 02, 2015, 10:52:14 AM »
Bollinger Band ek boht hi top level ka indicator ha aur agar hum ise proper use kare to boht hi zada profit ho sakta ha. Maine hamesha se yahi indicator top list pay rakha ha use karne k lia magar hume careful rehna chaiya k boht zada indicators nahi use karne chaiya warna results acha nahi mile ga. Abhe mai sirf 2-3 use kar rah hoon who bhe cTrader platform pay jo OctaFX provide kar rah ha ya boht hi upgraded platform ha to trading asan hojati ha.

Offline SimonKatich

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Re: Bollinger Bands
« Reply #7 on: December 13, 2015, 09:00:51 PM »
Mujhe ya indicator sab se zada pasand ha in k cross over pay trading karna kafi beneficial ha maar is k sath hume careful bhe rehna zaroori ha warna risk kafi zada ho sakta ha. Ahmed mai bhe OctaFX broker k sath work kar rah hon aur ya waqai kabile tarif company ha kiu k in logo k pass har option available ha small spread se le kar swap free account tak aur daily market reports aur bhe asan kar deti ha work ko.

Offline Rizwan khan

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Re: Bollinger Bands
« Reply #8 on: February 12, 2016, 03:30:21 PM »
Koi bhe indicator istemal karne se pehle hume ya koshish karnie chaiya k hum demo account mai test karein aur jab ache results mile tab hi ja kar hum ise real mai try kare. Mai FreshForex k sath kam kar rah hon to yahan to demo use karne ki zaroorat hi nahi ha mujhe kiu k yahan mai in boht acha promotion ha 1000 USD Test Drive welcome bonus jis se mai aram se kam kar sakta hon aur galti bhe sahi karsakta hon.

Offline Ahmedkhan

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Re: Bollinger Bands
« Reply #9 on: February 13, 2016, 05:45:43 AM »
Mai kuch time se naye indicators try kar rah hon magar Bollinger Band abhe bhe mera favorite ha kiu k ya kafi asan ha aur results boht ache milte hain magar hume naye cheze try karnie chaiya to ise hum achi strategy bana pai gay. Mai boht khush kismat hoon k OctaFX jesa broker mila ha kiu k in k demo contest meri boht madad karte hain achi strategy tayar karne mai khas tor pay cTrader jo har hafte hota ha.

Offline Rizwan khan

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Re: Bollinger Bands
« Reply #10 on: February 14, 2016, 03:30:56 AM »


USD/JPY ne is hafte bearish trend jari rakha aur 111 tak gayeaur phir 200 pips ki recovery kari magar abhe buy karne ka koi mauka nahi dikhraha kiu k abhe bhe bearish trend jari ha aur 110 level boht khas hoga kiu k is ka break hona kafi bara signal hoga warna agar aisa nai hua to shayad neutral trend rahi ga.

Offline Rizwan khan

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Re: Bollinger Bands
« Reply #11 on: March 12, 2016, 04:27:45 AM »


NZD/USD subah k time pay decline pay jarah tha business PMI ki waja se magar itna zada farka nahi para aur isne phir se gain shuru kardia aur abhe filhaal 0.675 tak ja chuka ha magar ane wale hafto mai bearish jane k zada imkan hain.

Offline Ahmedkhan

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Re: Bollinger Bands
« Reply #12 on: May 19, 2016, 02:26:15 PM »
Bollinger Bands sab se reliable indicator ha magar hume hamesha yahi koshish karnie chaiya k 1 indicator na istemal karein balke 2-3 indicators ho aur sath mai achi money management rakhein to ise hume profit kamane mai asani rahi gi aur risk bhe nahi hoga magar agar humne sirf yahi istemal keya to muskil hojai ga. Mai filhaal cTrader platform mai kam kar rah hon jo OctaFX broker ne provide keya ha to ise koi bhe indicator istemal karna aur asan hojata ha.

Offline JavedAkhtar

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Re: Bollinger Bands
« Reply #13 on: October 14, 2016, 04:08:07 AM »
Mai Ahmed ki baat se agree karonga k ya indicator waqai mai boht pasand keya jata ha aur zada log yahi istemal karne ka mashwara bhe dete hain. Filhaal mai SAR indicator istemal kar rah hoon jo boht acha ha magar hum koi bhe indicator istemal karein chahe SAR ho ya Bollinger Band hume demo pay pehle try karna chaiya aur mai bhe OctaFX broker k sath kam kar rah hon jahan free demo pay aram se ya try kar sakta hon.

Offline SameerKhan

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Re: Bollinger Bands
« Reply #14 on: January 23, 2017, 05:28:35 PM »
Hume koi bhe indicator istemal karna ho to ise pehle hume pehle se demo account pay try karna chaiya aur is k baad hi real mai. Mai boht lucky hoon k Alpari k sath kam kar rah hon kiu k yahan pura section ha ya sab chezo ka http://alpari.com/hi/analytics/fundamental_analysis/macro_indicators/ to ise mai sukoon se kam kar sakta hoon aur achi tara se profit kama sakta hoon bina koi masle k aur ya free bhe ha jis se aur bhe maza ata ha.

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