Quote from: exstasie on September 15, 2018, 10:57:47 PM

Quote from: lavishlife on September 15, 2018, 07:28:28 AM

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.

Squeeze is a very effective sign of breakout

Use it along with other indicators like rsi, rvgi, macd, volumes for confirmations and look for trend lines

BB shouldn't be relied on itself same with other indicators

Treat them as one of your signals and always look for confirmations