How to use Bollinger Band

How to use Bollinger Band
How to use Bollinger Band

The Bollinger bands are two lines Built around a moving average. These lines can be calculated from the standard deviation. The standard deviation measures the volatility. The indicator can voorla a trend reversal and continuation be determined.

Bollinger band signals

Sharp fluctuations courtyard mainly take place as the band narrows and the volatility decreases. In the figure, this is available from A.

Currency outside the bands
A rate outside of the band indicates a continuation of the current trend. In the figure, this is available from B.

Bottoms and tops
Bottoms and tops out of band followed by bottoms and tops in the band indicate reversals (reversal). In the figure, this is available from C.

Signals in the Bollinger Bands

calculation
The middle band is a simple moving average. In the formula, n is the number of periods in the moving average and y is the close.

Middle band

The tires were the same as the band means, but are shifted by the number of standard deviations. In the formula, D is the number of standard deviations.

Upper and lower band

By means of a table, then the tape is to be calculated.

The Bollinger Bands in ProRealTime
In ProRealTime we have the Bollinger bands (Boll Boll + and-) standard shown as purple lines and the MA (BollMA) is also purple. At a glance the width of the bands as well as whether the course falls within or outside of you want to see a color zone set. This zone is standard color purple. Naturally, you can customize default 20.2. Optionally, the values in a backtest to optimize for specific situations and markets.


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