Bollinger Bands in Forex
Bollinger Bands, invented by John Bollinger in the 80s in forex mainly used to reduce exchange rate volatility measure.
Bollinger Bands consist of 3 components:
The middle band: just rolling average over n periods
The upper band: K is an n-fold period, standard deviation above the central belt
The lower band: K is an n-fold period, standard deviation above the central belt
The default values for n and K are respectively 20 and 2
Bollinger Bands Interpretation
When the market volatility is low, then the upper and lower band transmit to each other (band convergence).
When the market volatility is high, then the upper and lower band of each other to remove (band divergence).
The food has always exchange rates tend to always return to the middle band.
Using Bollinger Bands In Currency Trading
Look out for a possible outbreak rate when the tires are very close together.
The exchange rate will likely continue to rise in a rising market when the price breaks through the upper band. The exchange rate will likely continue to decline in a falling market when the price breaks through the lower band.
related posts
- fibonacci charts
- moving average trend units
- new dimensions in the stock exchange trading by b. williams;
- free download up kumo ichimoku
- iavg vol forex volume indicator download
- 1 2 3 pattern trading system
- zigzag indicator outputs
- bollinger x indicator
- amazing color crossover forex indicator
- gator oscillator use
Forex is simple follow the trend and you will rich.
ConversionConversion EmoticonEmoticon