HERE MY ANALYSIS IS HIDDEN BECAUSE THERE ARE SOME CONFIDENTIAL DETAILS ARE LISTED THERE WHICH ARE ONLY BANKS AND INSTITUTIONAL MUST INVOLVE BUT I CAN EXPLAIN SOME THAT IS HERE THERE IS FOR TP AND FOR ENTRY THERE IS A KEY LEVEL
THE INDICATOR I USED TUTORIAL RULES ARE LISTES BELOW.
BOLINFER BANDS:
Basically, this little tool tells us whether the market is quiet or whether the market is LOUD!
When the market is quiet, the bands contract and when the market is LOUD, the bands expand.
Look at the chart below. The Bollinger Bands (BB) is a chart overlay indicator meaning it’s displayed over the price.
Notice how when the price is quiet, the bands are close together. When the price moves up, the bands spread apart.
The upper and lower bands measure volatility or the degree in the variation of prices over time.
Because Bollinger Bands measure volatility , the bands adjust automatically to changing market conditions.
That’s all there is to it. Yes, we could go on and bore you by going into the history of the Bollinger Bands , how it is calculated, the mathematical formulas behind it, and so on and so forth , but we really didn’t feel like typing it all out.
Okay fine fine, we’ll give a brief description…
What are Bollinger Bands?
Bollinger Bands are typically plotted as three lines:
An upper band
A middle line
A lower band
The middle line of the indicator is a simple moving average ( SMA ).
Most charting programs default to a 20-period, which is fine for most traders, but you can experiment with different moving average lengths after you get a little experience applying Bollinger Bands .
The upper and lower bands, by default, represent two standard deviations above and below the middle line (moving average).
If you’re freaking out because you’re not familiar with standard deviations.
Have no fear.
The concept of standard deviation ( SD ) is just a measure of how spread out numbers are.
If the upper and lower bands are 1 standard deviation, this means that about 68% of price moves that have occurred recently are CONTAINED within these bands.
If the upper and lower bands are 2 standard deviations, this means that about 95% of price moves that have occurred recently are CONTAINED within these bands.
As you can see, the higher the value of SD you use for the bands, the more prices the bands “capture”.
You can try out different standard deviations for the bands once you become more familiar with how they work.
In all honesty, to get started, you don’t need to know most of this stuff. We think it’s more important that we show you some ways you can apply the Bollinger Bands to your trading.
The Bollinger Bounce
One thing you should know about Bollinger Bands is that the price tends to return to the middle of the bands.
That is the whole idea behind the “Bollinger Bounce.”
By looking at the chart below, can you tell us where the price might go next?
Bollinger Squeeze
The “Bollinger Squeeze” is pretty self-explanatory. When the bands squeeze together, it usually means that a breakout is getting ready to happen.
If the candles start to break out above the TOP band, then the move will usually continue to go UP.
If the candles start to break out below the BOTTOM band, then the price will usually continue to go DOWN.
This is how a typical Bollinger Squeeze works.
This strategy is designed for you to catch a move as early as possible.
Setups like these don’t occur every day, but you can probably spot them a few times a week if you are looking at a 15-minute chart.
There are many other things you can do with Bollinger Bands , but these are the two most common strategies associated with them.
Go ahead and add the indicator to your charts and watch how prices move with respect to the three bands. Once you’ve got the hang of it, try changing up some of the indicator’s parameters.
THIS IS THE BRIEF STRATEGY THAT I USED HERE
THE INDICATOR I USED TUTORIAL RULES ARE LISTES BELOW.
BOLINFER BANDS:
Basically, this little tool tells us whether the market is quiet or whether the market is LOUD!
When the market is quiet, the bands contract and when the market is LOUD, the bands expand.
Look at the chart below. The Bollinger Bands (BB) is a chart overlay indicator meaning it’s displayed over the price.
Notice how when the price is quiet, the bands are close together. When the price moves up, the bands spread apart.
The upper and lower bands measure volatility or the degree in the variation of prices over time.
Because Bollinger Bands measure volatility , the bands adjust automatically to changing market conditions.
That’s all there is to it. Yes, we could go on and bore you by going into the history of the Bollinger Bands , how it is calculated, the mathematical formulas behind it, and so on and so forth , but we really didn’t feel like typing it all out.
Okay fine fine, we’ll give a brief description…
What are Bollinger Bands?
Bollinger Bands are typically plotted as three lines:
An upper band
A middle line
A lower band
The middle line of the indicator is a simple moving average ( SMA ).
Most charting programs default to a 20-period, which is fine for most traders, but you can experiment with different moving average lengths after you get a little experience applying Bollinger Bands .
The upper and lower bands, by default, represent two standard deviations above and below the middle line (moving average).
If you’re freaking out because you’re not familiar with standard deviations.
Have no fear.
The concept of standard deviation ( SD ) is just a measure of how spread out numbers are.
If the upper and lower bands are 1 standard deviation, this means that about 68% of price moves that have occurred recently are CONTAINED within these bands.
If the upper and lower bands are 2 standard deviations, this means that about 95% of price moves that have occurred recently are CONTAINED within these bands.
As you can see, the higher the value of SD you use for the bands, the more prices the bands “capture”.
You can try out different standard deviations for the bands once you become more familiar with how they work.
In all honesty, to get started, you don’t need to know most of this stuff. We think it’s more important that we show you some ways you can apply the Bollinger Bands to your trading.
The Bollinger Bounce
One thing you should know about Bollinger Bands is that the price tends to return to the middle of the bands.
That is the whole idea behind the “Bollinger Bounce.”
By looking at the chart below, can you tell us where the price might go next?
Bollinger Squeeze
The “Bollinger Squeeze” is pretty self-explanatory. When the bands squeeze together, it usually means that a breakout is getting ready to happen.
If the candles start to break out above the TOP band, then the move will usually continue to go UP.
If the candles start to break out below the BOTTOM band, then the price will usually continue to go DOWN.
This is how a typical Bollinger Squeeze works.
This strategy is designed for you to catch a move as early as possible.
Setups like these don’t occur every day, but you can probably spot them a few times a week if you are looking at a 15-minute chart.
There are many other things you can do with Bollinger Bands , but these are the two most common strategies associated with them.
Go ahead and add the indicator to your charts and watch how prices move with respect to the three bands. Once you’ve got the hang of it, try changing up some of the indicator’s parameters.
THIS IS THE BRIEF STRATEGY THAT I USED HERE