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5.1 Bollinger Bands trading instructions

Bollinger band indicator measure volatility. it’s this dimension that allows us to get right into a development. the higher the volatility the more gamers there are available in the market. The decrease the volatility the much less players there are in the market. With this in thoughts, low volatility represents a possible end of the present development. as soon as this happens and a new trend begins, we are in a position to get into that pattern with the aid of waiting for the soar of the simple shifting reasonable (center line). Our target is just the earlier low. Bollinger bands can also be used to alternate reversals however they cannot be used on their own. we have now to make use of some other indicator along its aspect such because the Relative power Index (RSI). when we see clear diversion between the associated fee levels which are touching the outside Bollinger bands and the RSI indicator, a new trend is more likely to start moving in the wrong way.

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