Although I'm not using this wonderful indicator, I still find it very informative. You definitely need to try it in trading. Bollinger bands unite 2 most important indicators in forex: Moving Average and Stochastic. It is also very visual indicator that shows in what condition the market is in.
Trading Bollinger bands is much the same as with stochastic as described in previous post. The only difference is in the levels which happens to be dynamic.
There is one more thing you need to know to trade on Bollinger bands. It is their feature of changing its size. When they have close limits you need to prepare for break through. The longer their bounds remains narrow the bigger break through will be. Frequently this happens because of market's waiting for important economic news.
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