Bollinger Bands Strategy

[Jojo12]

The momentum indicator uses the most recent close price and compares it to the previous close price. It is then indicated by a line, usually on a separate chart below the main price chart. The indicator swings to and from a central line of 100. The distance from the indicator to the line above or below 100 indicates how quickly the price changes. For example, a reading of 102 would indicate that the market is moving faster higher than a reading of 101. Conversely, a reading of 98 would indicate that the market is in a stronger downtrend than a reading of 99 . Momentum indicators can be a useful tool for providing overbought and oversold signals. Forex traders can use it to identify the strength of market movement and whether prices are moving up or down. It is important to make sure that the market has followed the momentum indicator on previous occasions and to find the exact conditions that seem to work.

 

[dragos]

I have used in the past bollinger bands they are ok , but I found better solutions

 

[Charles Agustin]

Proper money management helps a trader derive average profit from the market. And pro traders are so serious on money management rules!

 

[rj3245]

I find the BB bands to sometimes be really confusing. Sometimes it will trend in one direction extremely strongly and the bands seems to not work well.