Post
Topic
Board Trading Discussion
Re: bollinger bands
by
exstasie
on 15/09/2018, 22:57:47 UTC
I am using Bollinger Bands in my trades, but I have only used it for a couple of days,
so I can't say that using it is very effective, so my question is, bollinger bands only use
is providing support and resistance? or is there other ways I can use bollinger bands in my trades?

The upper and lower bands are deviation-based support and resistance. The middle band (on default settings) is the 20-period moving average. After bouncing off support or resistance a couple times, price often returns there.

The main way I use Bollinger Bands is as a volatility indicator. When bands are very tight, price is coiling for a breakout. We call it a "squeeze." During those times, breaking and holding above or below the bands is a sign of a breakout. Some people just use BB width as an indicator for squeezing, and they don't bother with the actual bands.