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  1. #1
    Master Member Bogdan G's Avatar

    Bollinger... John Bollinger. The James Bond of Volatility !!!

    This smart guy needed some way of measuring volatility in the financial markets. Yes, volatility, a very important thing, as we all know because identifying times of high volatility or low volatility can help us a lot in determining the right strategy we need to use. In the early 1980’s John Bollinger found the answer to his quest; and it came in the form of two bands and a Simple Moving Average (usually a 20 period MA) which he simply called Bollinger Bands."

    If you want to understand more about this great tool, read the entire article: http://www.binaryoptionsthatsuck.com...inary-options/
    Cheers

  2. #2
    Legendry Member Michael Hodges's Avatar
    Did Bollinger actually invent his bands or just name them/the strategy. doesn't he use standard deviation bands and apply them to his charts?

  3. #3
    Master Member Bogdan G's Avatar
    Umm.. John Bollinger invented Bollinger Bands

    http://www.bollingerbands.com/


    "John Bollinger is the president and founder of Bollinger Capital Management. He personally governs all investment decisions for Bollinger Capital Management clients.

    John Bollinger is a Chartered Financial Analyst (CFA) and a Chartered Market Technician (CMT). He is known to the public for his many years of market analysis and commentary on television -- first on Financial News Network, where he was the Chief Market Analyst -- and subsequently on CNBC.

    John Bollinger is also well known to professional investors. An avid researcher, he has developed a number of widely used investment tools and analytical techniques. His Bollinger Bands® and related tools have been integrated into most of the analytical software and charting platforms currently in use. "
    http://www.bollingerbands.com/services/bcm/

  4. #4
    Legendry Member Michael Hodges's Avatar
    I know he invented Bollinger Band analysis, my question was more on the difference between standard deviation bands (which is what I believe BBands are or are based on) and actual Bollinger Bands.

  5. #5
    Veteran Member hchandra's Avatar
    I think Looking at the formula to create bollinger band will help answering the question

    * Middle Band = 20-day simple moving average (SMA)
    * Upper Band = 20-day SMA + (20-day standard deviation of price x 2)
    * Lower Band = 20-day SMA - (20-day standard deviation of price x 2)

    Basically its a standard deviation of price, and people at that time never though to trade using standard deviation?]
    haven't read the links, but maybe the bollinger band analysis more of how to take the trade using standard deviation defined.

  6. #6
    Legendry Member Michael Hodges's Avatar
    Sweet, I was fishing for an answer like that. It does include standard deviation without being a standard deviation band, incorporating moving averages to smooth out the data and provide signals.

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