Understanding Bollinger Bands

[Rickeo]

Hi guys.

OK so I'm new and really trying to learn.

I've been reading/studying about Bollinger Bands.

Now am I right in thinking that in this image here:

The bands are saying that it's likely to go downwards, as the lines are pointing downwards? So I am best off placing my investment on PUT?

Please forgive me, I'm really new to this, might sound like a stupid question but I am really trying to learn.

Thanks for any advice in advance.

 

[Rickeo]

Or does it mean that as say the candles start to touch the yellow line then you should call if they touch the red or are close to then you should put as they're unlikely to break out?

 

[Rhody Trader]

The question I would ask you before getting into thinking strategy is what is your understanding of what the Bands are and what they are meant to indicate?

 

[aag100]

bollinger bands are like any other indicator,sometimes they will work as it says on the tin and other times not

 

[Pat494]

First make the bands fit the instrument.
There are some excellent videos on U tube.

 

[billyjean]

Hi guys.

OK so I'm new and really trying to learn.

I've been reading/studying about Bollinger Bands.

Now am I right in thinking that in this image here:

The bands are saying that it's likely to go downwards, as the lines are pointing downwards? So I am best off placing my investment on PUT?

Please forgive me, I'm really new to this, might sound like a stupid question but I am really trying to learn.

Thanks for any advice in advance.

Bollinger bands alone means nothing trading like this is same as tossing a coin. ut nevertheless you can proceed this way as well just always keep stop loss ready to cut losses. Never try to beat the market, don't mislead yourself that you can bit all crowd there, jut SUBMIT to it and try to smartly joins trends.

 

[piphoe]

don't currently use them, but would like to know how to use them

 

[wisefoolx]

LOL.

Another indicator based on babymaths that is dressed up as lamb.

Well 1st off the calculations are legit but as said; in my view too simple to be of real value.

BB are a MA line in the middle with 2 other lines - 1 on top and the other bottom which form a kind of band around the MA line.

These 'bands' are usually one standard deviation from the MA though it can be more (eg. 2 or >).

SDs are are what you might say in maths terms are the' average ' variation that the price might move from the MA of prices both up and downwards. The MA and the bands are updated on a live basis so they ' move ' . That's your basic BB.

My basic beef with that the bands simply replicate with price is doing albeit 1SD away either side - so what ? That just confirms what I can plainly just from the price line itself - a very poor guide for where prices might go.

Regression with its implicit differential calculus is far superior as a guide IHO.