Posted on April 14, 2016

Trading with 2 bollinger bands

In her book, The Little Book of Currency Trading, rock-star forex analyst Kathy Lien writes:

They weren’t bad, but don’t match the ease of use or many of the useful features of full charting packages. So if you don’t already have access to afull featured charting platform, I strongly suggest signing up for at least a practice account with a broker that offers MT4 or a similarly robustcharting package. trade| )

As you can see from Chart 1, DBBs create four zones around that 20 period SMA. However we combine the middle two areas and focus on three zones: upperquarter, the middle half, and the bottom quarter.

Watch trading with 2 bollinger bands

Trading Like a Trader - Ask Robson Hayashida About Bollinger Bands - Secrets Finally Revealed trading with 2 bollinger bands trade.

Jun 4, 2014 . Bollinger Bands have two adjustable settings: the Period and the . This information can then be used to confirm trade signals from other .

Of the hundreds of technical indicators out there, the Double Bollinger Bands are hands down my favorite…they provide a wealth of actionableinformation. They tell me whether a currency pair is in a trend or range, the direction of the trend, and when the trend has exhausted. Moreimportantly, Bollinger Bands also identify entry points and proper places to put a stop.

Description trading with 2 bollinger bands

Part 1 Is An Introduction To Double Bollinger Bands, Part 2 Is A Continuation That Presents Specific Rules And Examples, Part 3 (coming soon) Is AQuick Summary

For example, you could use any combination of the following:

Trade trading with 2 bollinger bands.

Jun 4, 2014 . Bollinger Bands have two adjustable settings: the Period and the . This information can then be used to confirm trade signals from other .

It’s these zones that provide the added information about the strength of a trend, whether it still has the momentum to continue, and where wemight attempt to enter trades, even if there is no other support or resistance (s/r) to serve as a reference point, as was the case with gold duringmuch of the period covered, when gold continually hit new historical highs.

You may find from experience that you need to adjust those criteria to confirm moves between DBB zones. (Trade trading with 2 bollinger bands.|)

As always, when an indicator sends a signal, we seek some kind of confirmation before trading. Obviously we usually don’t make trade decisions on thevery first tick or closing candle into a new zone, at least not with more than a portion of our total planned position.

For those without a statistics background,  just know that for purposes of this discussion, standard deviations function as units of distance from the20-period simple moving average (SMA), which is both the center line between the four DBBs and thus the baseline for determining the location of the 1and 2 standard deviation Bollinger bands. If you want to know to know more about them, you can either search out the details online, or find furtherexplanations in my book in chapters 4 and 8.