Introduction to Bollinger Bands Indicator
The Purpose of Bollinger Bands
How to Set Up Bollinger Bands in Your Trade View
- Drop Bollinger Bands in the map
- Head to ‘settings’ and pick two standard deviations and a basic moving average (SMA) of 20-periods.
- Attach another collection of Bollinger Bands of a new color
- Go to ‘Settings’ again and pick one standard deviation and a 20-period SMA
How to Use Bollinger Bands in Swing Trading
Knowing Bollinger Bands zones
A1 is the lowest Bollinger Band line which is two standard deviations apart from X, which is the 20-period SMA
B1 is the bottom Bollinger Band line which is the 20-period SMA
X is the standard deviation. It acts as both the middle of the Double Bollinger Bands (A1B1 and A2B2)
B2 is the lower BB line and is one standard deviation away from the 20-period SMA
A2 is the lower BB line, which is two standard deviations away from the 20-period SMA.
The zone between A1 and B1 is the Buy Zone, the first Neutral Zone is between B1 and X, the second Neutral Zone is between X and B2, the Sale Zone is between B2 and A2.
How Do You Spot Patterns With Bollinger Band?
How Accurate are Bollinger Bands?
How Much Predictive Power have Bollinger Bands Got?
What Indicator Combines Well With Bollinger Band?
What can Bollinger Bands Identify?
- Company Consolidation Periods
- Periods with large volatility breakouts come up
- Possible bottoms or market peaks
John Bollinger, the developer of Bollinger Bands suggests a setting of 9-12.
Short-term moving averages are preferred by traders who want to trade with the current dynamic market. The 10 EMA and 20Ma are the most common exponential moving averages for the short term. These moving averages react most quickly to price moves.
The best indicators are
Moving Average (MA)
Exponential Moving Average (EMA)
Moving average convergence divergence (MACD)
Index of relative strength (RSI).