can agree that Bollinger Bands is a great indicator for measuring market volatility. It actually catches every single cycle, high end low with amazing precision. My strong advice to you is not to tweak the settings at all. Lower Band, middle band - 2 standard deviations. In short, the BB width indicator measures the spread of the bands to the moving average to gauge the volatility of a stock. These price swings are breathtaking! Who Knew A Top was In? This is always fun. However, from my experience, remote work from home jobs live in state the guys that take money out of the market when it presents itself, are the ones sitting with a big pile of cash at the end of the day. Price action trading strategies, so Ive got a cycle indicator that I use. Well, now you have an actual reading of the volatility of a security, you can then look back over months or years to see if there are any repeatable patterns of how price reacts when it hits extremes.
Bollinger Bands Indicator, i promise I will make this as painless as possible, but it would be wrong of me not to give my newbies the "who created and what are" Bollinger Bands introduction. Use the ideas and/or modify them to suit your trading style, but only at your own risk. But, just send me an email, if youre interested and well send you an invitation to this. Because you are not asking much from the market in terms of price movement. There is a lot of compelling information in here, so please resist the urge to skim read.
Applying Bollinger Bands to a Volatility Indicator The inspiration for this section is from the movie Teenage Mutant Ninja Turtles, where Michelangelo gets super excited about a slice of pizza and compares it to a funny video of a cat playing chopsticks with chopsticks. So, the way to handle this sort of setup is to (1) wait for the candlestick to come back inside of the bands and (2) make sure there are a few inside bars that do not break the low of the first bar and (3). En, sat, 07/30/2011 - 09:32. This indicates that the downward pressure in the stock has subsided and there is a shift from sellers to buyers. This is the obvious question for anyone reading this article.