When you are having a difficult trying to understand what price is telling you need an interpreter. Bollinger bands are one of the most popular indicators used in the online trading. First developed by John Bollinger in the 1980’s the bands gave strong signs of market momentum and entry and exit points.
A trader can safely find entry points when market momentum will carry an asset in the same direction over a short period of time, many traders believe that everything you need to know to successfully execute a trade can be found within the Bollinger bands, including entry and exit points and stop loss levels. The bands automatically widen when volatility increases and narrow when volatility decreases. This dynamic nature of Bollinger Bands also means they can be used on different securities with the standard settings. For signals, Bollinger Bands can be used to identify M-Tops and W-Bottoms or to determine the strength of the trend.
Barry Norman The Director of Investors Trading Academy as well as a published author and educator. Barry brings with him over 35 years of financial market knowledge and experience. He holds an MBA in Finance and Economics from UCLA and an undergraduate degree in Economics from the University of Maryland. Barry was award the title of “Best Education in Europe” by Global Banking & Finance. Barry is also a presenter for the MoneyShow and many well-known news sources.