Explanation Bollinger Bands as trade analysis

[AakZaki]

Bollinger bands are an indicator used to measure the volatility of a market. Basically, this indicator tells us whether the market is quiet or the market is crowded. So that we can determine what strategy we will use to calm the market and what strategies we use in a crowded market.

As it pertains to crowd the market, it has to do with volume. Therefore the use of Bollinger band is very good if pair it with a volume indicator.

One thing you should know about Bollinger bands is that prices tend to go back to the middle band. it is because Bollinger band also serves as a dynamic support and resistance levels

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1715360223

[1715360223]

1715360223

[1715360223]

1715360223

[1715360223]

1715360223

[Idrisu]

You are right op but Bollinger band and volumes indicators alone will not give you success in trading as there laying indications. Though Bollinger band can be a support and resistance level most time it's do failed completely. There are three fundamental way of analysis the market and you most adhere to it if you want to succeed in trading e.g Technical which price action knowledge can sigle handedly give your support and resistance, entry and exist signal and trading volume.

[Amph]

i think they don't work always, i tried, but some times the market become unpredictable and the bands can not visualize the correct pattern

this happen when the market change from up to down so fast that the bands need still to adapt to it, you will get something like short sine wave inside two lines

[AakZaki]

You are right op but Bollinger band and volumes indicators alone will not give you success in trading as there laying indications. Though Bollinger band can be a support and resistance level most time it's do failed completely. There are three fundamental way of analysis the market and you most adhere to it if you want to succeed in trading e.g Technical which price action knowledge can sigle handedly give your support and resistance, entry and exist signal and trading volume.

Very true if the trade is not enough just to use Bollinger bands, I just share with the newbies what it was Bollinger band. I myself have used many tools of analysis, maybe next time I will share more info