Bollinger Bands is a standard leading/lagging technical indicator invented by Jon Bollinger to monitor market volatility with the prices situated above and below the center of the band, which is the MA itself, traditionally defaulting on 20, and the “Bands” above and below representing the diviated price dispersment in regards to the MA 20 itself.

The closer price approaches to the MA20 after the break out/break down, the better trading opportunities present themselves : provided the market is in an uptrend and the prices retrace from the highs ( pull back), as long as the candle close is still above the MA20 itself, the market is ready for another break, and we are ready to ” buy after a dip”/ Provided the prices close below the MA20, the market will be then most likely attracted to the opposite side , lower Band. We can use this knowledge to successfully determine entries , watching the prices in regards to the MA20 and the prices in regards to the Bands.

Here is the link to the free indicators you can download and use for your trading:

http://fxuniversity.org/forums/viewtopic.php?f=14&t=24

Lea in Forex Strategies | No Comments » on Wednesday, September 9th, 2009 at 9:06 pm.
RSS 2.0 | Leave a response | Trackback