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Thread: Bollinger Bands ???

  1. #1
    marc
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    Bollinger Bands ??? !!!

    So, BB seem to be a very common indicator ... and I noticed lately, that I put it on my charts automatically from my very first trading days ...

    But actually I still don't know how to use them!

    From my observation the price touches/goes over the limits of the bands, and then:

    A) pulls back, or
    B) trends like crazy

    So ... the price can go up ... or down ... it depends ...
    How nice! ... but is that information actually useful?

    Please, all of you BB-wizards, share your wisdom with me!

  2. #2
    willyw
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    Usually and normally when price touches the upper band it will retrace downwards and vice versa (when price touches the lower band it will reverse upwards). There is also a moving average line (mid line) between both the upper and lower bands. If the retrace is mild, price will touches the mid line and reverse, usually happens in a sideway market. I trade Bolling Bands for breakouts, i.e. when the current candle closes above the upper band and the price of the next candle is above the upper band its a strong up trend, trend will most probably continue upwards and vice versa (for the lower band).
    I combine BB with MACD
    Last edited by willyw; 12-03-2013 at 04:57 AM.

  3. #3
    marc
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    Many thanks, willy ... that was a very useful explanation (as always!)

  4. #4
    willyw
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    Quote Originally Posted by marc View Post
    Many thanks, willy ... that was a very useful explanation (as always!)
    You are most welcome, Marc!!!!
    FYI, the way I use to explain is because I was a trainer(in Technical analysis) before in the investment companies I work for, training newbie traders so I have to explain in detail. (One day I might conduct online technical analysis training - considering)
    Last edited by willyw; 12-04-2013 at 04:12 AM.

  5. #5
    pinoyoptions
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    Quote Originally Posted by willyw View Post
    Usually and normally when price touches the upper band it will retrace downwards and vice versa (when price touches the lower band it will reverse upwards). There is also a moving average line (mid line) between both the upper and lower bands. If the retrace is mild, price will touches the mid line and reverse, usually happens in a sideway market. I trade Bolling Bands for breakouts, i.e. when the current candle closes above the upper band and the price of the next candle is above the upper band its a strong up trend, trend will most probably continue upwards and vice versa (for the lower band).
    I combine BB with MACD
    What a nice detailed explanation SirWiily, I'm not a fan of BB indicator but for sometimes I usually add this indicator for me to check volatility in certain chart h1, h4, D1 .. Thumbs Up for marc, you always brought up informative topic, you might be the next master specialized in indicator in near future

  6. #6
    willyw
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    Quote Originally Posted by pinoyoptions View Post
    What a nice detailed explanation SirWiily, I'm not a fan of BB indicator but for sometimes I usually add this indicator for me to check volatility in certain chart h1, h4, D1 .. Thumbs Up for marc, you always brought up informative topic, you might be the next master specialized in indicator in near future
    Yes BB is a good volatility indicator.

  7. #7
    marc
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    Quote Originally Posted by pinoyoptions View Post
    Thumbs Up for marc, you always brought up informative topic, you might be the next master specialized in indicator in near future
    Thanks pinoy ... yes, since I started trading, I have for sure tried out hundreds of indicators with a lot of possible settings ... but it still may take a while to fit in Bogdans and Willys footsteps

  8. #8
    willyw
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    Quote Originally Posted by marc View Post
    Thanks pinoy ... yes, since I started trading, I have for sure tried out hundreds of indicators with a lot of possible settings ... but it still may take a while to fit in Bogdans and Willys footsteps
    Be patience, marc. You will succeed.
    Besides trying different settings, have you thought of modifying them or combining indicators to modify? My way of using indicators is I like to modify them.

  9. #9
    marc
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    Quote Originally Posted by willyw View Post
    Be patience, marc. You will succeed.
    Besides trying different settings, have you thought of modifying them or combining indicators to modify? My way of using indicators is I like to modify them.
    Yes, I modifed some indicators, too ... as long as I knew, what I was doing ... and if it's even possible ... but I am no programmer, though

    Willy, do you care to share which indicators you use? ... and what modifications you made?

  10. #10
    Michael Hodges
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    Quote Originally Posted by marc View Post
    Yes, I modifed some indicators, too ... as long as I knew, what I was doing ... and if it's even possible ... but I am no programmer, though

    Willy, do you care to share which indicators you use? ... and what modifications you made?
    Bollinger works well with support and resistance and also MACD.

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