Hey everyone,

Just a quick question, does anyone here use the bollinger bands as part of their analysis? If so, have they been of help?

Thanks in advance for the advice!

The basic interpretation of Bollinger Bands is that, the prices tend to stay within the upper and lower bands. The Bollinger Bands have unique characteristic that the spacing between the bands varies based on the volatility of the currency prices. During high volatility periods, the bands widen to become more forgiving. Similarly during periods of low volatility, the bands narrow to contain currency prices. The bands are draw with two standard deviations above and below a SMA. They indicate a "sell" when above the moving average (or close to the upper band) and a "buy" when below it (or close to the lower band). The bands are used by some forex traders in conjunction with other analyses, including RSI, MACD, CCI, and Rate of Change.

To answer your question...
yes I've used them before...it's a decent indicator used by alot of people.
Try adding Keltner channels to the chart and watch when bollinger band gets inside keltner channels on various time frames..
sets up good breakouts

I use bollinger bands and it has been extremely useful to me. I have a near perfect understanding of trading using bollinger bands. The default setting of 20 periods and deviation 2 would work just fine on the daily and hourly chart though I strongly suggest using 24 and 22 periods on the hourly and daily chart respectively. You may also wish to add any oscillator of your choice to help you determine OB & OS levels. Google "John Bollinger" he is the 'inventor' of the bollinger band. He's got a book on it that sells for just a little over $50. I suggest that you purchase his book. Remember, if you don't learn, you wouldn't earn.

Thanks so much for the advice! I agree learning is the most important aspect of succeeding in Forex, along with gaining real time market experience. It seems to me like the bb bands are a great tool but best used with other analysis tools.

yes I've used them before...it's a decent indicator used by alot of people.
Try adding Keltner channels to the chart and watch when bollinger band gets inside keltner channels on various time frames..
sets up good breakouts

Interesting replies.....

I am quite impressed!!!

I have read some of your replies and I think you sounds like a retard.

This post has been edited by Caesar95: Oct 22 2009, 02:52 AM

Yes I also use them. They are very helpfull and sometimes I've even won trades based on them and stochs only.

Bollinger band become one of my important tools to find entry spot. It's great tool.
actually BB is Moving average with standard deviation. Default standard deviation is 2 but I use standard deviation 1, 2 and 3

You may find the Dean Saunders Forex Powerband Dominator systems of interest - there is a full review on our website.

Hope it helps.