The Bollinger band makes it easy to buying low and sell high. When the trend line is near to a higher position the trade needs to stop one line. Bollinger Band will provide the trend to manipulate the channels, trend lines. In the boiling band, the trader sets the line from higher or lower edges of trade.
If the line is going upward direction this is an uptrend, and if the lines going downward direction this trend is a downtrend. The middle band has 20 periods and upper and lower are two standard deviations.
If the pip higher or less than 5 pips the trader waits for comes closer to the band. If there is RSI in the trade, this is always placed between 30 and 50.
In selling trade the RSI is always between 550 and 70. In RSI you make an entry when there is strong Bullish Candle, Consecutive reversal candles to the upside, or bullish pattern forming.
100% Winning with Bollinger Band Indicator MT4
The Bollinger bands have three lines upper band, lower band, and middle band. The calculation of these bands is for 20 days
The Bollinger Band formula is the following:
BOLU = MA(TP, n) + m ∗ σ[TP, n]
BOLD = MA(TP, n) – m ∗ σ[TP, n]
BOLU = Upper Bollinger Band
BOLD = Lower Bollinger Band
MA = Moving average
TP (typical price) = (High + Low + Close) ÷ 3
n = Number of days in smoothing period
m = Number of standard deviations
σ[TP, n]=Standard Deviation over last n periods of TP
Double and Mastering Bollinger Bands Strategy
Uses of the Bollinger band strategy:
In 1980 the John Bollinger creates this indicator. The purpose of these bands is to give you proper planning of high and low.
This band is used to selling when the Price is in touch with the upper band and buying when the price is in touch with the lower band. The difference between the lower and upper and middle band is evaluating by volatility.
If there is a wide band it means there is volatility at this time. If there are changes in price then the band becomes narrow, it means there is minimum volatility. This indicator will control the direction of trade. Use this trading strategy for 1 hour or 4 hour time chart. You can adjust this chart according to your trade. The best timing to use is a 4-hour time chart.
Before using this band let’s see how it looks like. There is no need for a trial for using this indicator. In this, the trader trades with techniques and proper planning.
bollinger band trading rule pdf
When the price hits the lower band the buyer give much attention to trade and buys at this time and sells when the price hits the upper band. But when the Bollinger band is using there is proper planning for this trade.
There are many trends in the market some are strong and some are weak. This is technically worked but there is a lot of risk in Bollinger band. Many strong trends ride the bands and ends on stopping. To control these risks the trader uses RSI indicators.
With the help of this trade is managed. RSI indicator is used in the Bollinger band to check the currency is weak or strong.
Download Bollinger Bands Indicator Strategy MT4 Free
These indicators are professionals in trading. There is no need to adjust the indicators it is automatically managed. In Bollinger band there are many other bands are managed by the trader.
These bands are also having valuable tools that help in trade. If there is an error in trend the whole process will start from begging. With the help of Bollinger, the trader examines the errors occurs in the future and minimize them by RSI indicator and bands. For the last, the trader increases its trade with the help of this.