Monday, September 25th, 2017

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25. How to Trade Bollinger Bands – Stocks, Futures, Forex


www.informedtrades.com A Lesson on Bollinger Bands for active traders and investors using technical analysis in the forex, futures, and stock markets. The link that I refer to on Standard Deviation is here: en.wikipedia.org The link that I refer to with more resources on Bollinger Bands is here: www.informedtrades.com In our last lesson we learned about the Stochastic Oscillator and how traders use this in their trading. In today’s lesson we are going to learn about an indicator which helps traders gauge the volatility and how current prices compare to past prices. Bollinger Bands are comprised of three bands which are referred to as the upper band, the lower band, and the center band. The middle band is a simple moving average which is normally set at 20 periods, and the upper band and lower band represent chart points that are two standard deviations away from that moving average. Example of Bollinger Bands: Bollinger bands are designed to give traders a feel for what the volatility is in the market and how high or low prices are relative to the recent past. The basic premise of Bollinger bands is that price should normally fall within two standard deviations (represented by the upper and lower band) of the mean which is the center line moving average. If you are unfamiliar with what a standard deviation is you can read about it here en.wikipedia.org As this is the case trend reversals often occur near the upper and lower bands. As the center line is a moving average


25 Responses to “25. How to Trade Bollinger Bands – Stocks, Futures, Forex”
  1. kosai19 says:

    It’s not really a full system, just one part of trading. If you want more info send me a private message.


  2. OilTrading says:

    Listen everyone, people are going to tell you they make money trading the forex, trust me, they don’t. Look at my profile and watch my video on the forex market, it will OPEN your eyes. Then let me teach you a real market by learning to trade Oil, you cannot imagine how profitable it is and how relatively easy it is to trade if you know what you’re doing. The Forex is a 100% scam market, watch my video and you’ll see. Don’t ruin your life trading the Forex

  3. icarus3375 says:

    sounds like a good system. thanks

  4. kosai19 says:

    He does a 2 to 1 ratio (risk vs reward). So if his target is 20 pips, his stop order is set at 10.

  5. icarus3375 says:

    how much is he willing to lose when he does have a bad day?

  6. eitoobmiz says:

    iuse the MACD STRATEGY for consistant profits

  7. kosai19 says:

    Actually 20 pips a day consistently is very possible. I know quite a few people who can do that 7 out of 10 days trading.

    It’s true that the vast majority don’t make money trading so it’s understandable but those that do win consistently.

    The guy who introduced me to trading in fact makes 10 to 20 pips almost every day. I’ve watched his trading records so I know it’s legit.

  8. LondonBoy2006 says:

    I never said it was, I was quoting some one else who claims that they make 100 pips a day as a beginner. Which was complete bull.

    anyone saying they make 100 pips a day and is not a multi millionaire is a bloody liar. Same with anyone who says they make at least 20 pips a day consitently.

  9. kosai19 says:

    Not sure that’s realistic with trading even forex. The only pair I know that has any kind of price movement even close to that tis the GDP/USD. Been trading forex now 5 years… 40 pips on the pound is more reasonable than 100 in my opinion.

  10. cashlin62 says:

    Excellent. Thank you.

  11. nationaleventphoto says:

    A new robot coming out in December 2009 called 4xGreed gonna be hot. They are only releasing 1000 copies.. Live stats also posted for your review.

  12. Mrbignutzful says:

    Thank you again David, you always manage to simplify things!!!! :)

  13. aslamaman says:

    hey dave! i am begginer and geting a lot of assistance from your lectures, i am practising on demo, can u tell me that from where should i get these charts as bullinger, stockastics etc……. thanks!

  14. joshuademoraes says:

    forex?? I prefer to stay away from forex…futures is my fav..:D

  15. joshuademoraes says:

    yes..market look confusing and a really chaos, but the logic is simple…price goes up or down and so many traders lose money by not control the risks (stops) and emotions..I lost 40 % of my money and now I’m trying to get it back..and I will for sure

  16. roseman129 says:

    agree with ur comment. at the beginning i trade forex. i always win. but when i came in the middle i always loose. only after a year i can create my own system. with combination indicator and candle characteristic. until now i didnt stop learning all forex tools.

  17. danutzorion says:

    I don’t trade on live account yet,i started 3 months ago on a demo account with 500 dollars,now I have 1600…I trade only gbpusd,gbpjpy on 5 min chart,I don’t hold a trade more than one day and i don’t trade monday and friday.Soon i will have a live account,I hope that it will be the same thing there….

  18. surfcitynews says:

    What currency pair are you trading and are you doing the scalp chop or longer term trades like holding for more than one day?

  19. LondonBoy2006 says:

    if you make at least 100 pips a day, then you should be a multi millionaire in 6 months.

  20. danutzorion says:

    i’m newbie in forex but after i saw all this videos i;ve start to win ,i make at least 100 hundred pips per day,maybe for you is not very much but for me it is,my loses are insignificant ,thank you for this lessons,i learned allot.

  21. deanmat says:

    I’ve been looking at tons of charts. If you simply buy the stock you are following when it crosses above the 50 DMA and sell when it drops below, you can’t really lose money. You would miss all the big down turns and catch all the big up trends. You of course don’t make anything in a sideways market, but then again, sideways markets are hard for everyone.

  22. Aletryhgyuji says:

    Great video, If you need any help getting your videos or channel exposed, i use a service called thetubeviews . net it has helped 5 of my videos get ranked on the first page

    Have A Good one!

  23. elwalvador says:

    The most reliable buy/sell signals come from well-established support and resistance lines. The second most important ones come from the 50 and 200 day SIMPLE moving average. With those two simple things you could consistantly make profitable trades. All the other indicators simply run the price action through some complicated formula, but don’t really give much predictive value. Basically, there almost useless.

  24. myspacesecrets says:

    bollinger bands dont work in this market.

    wayyyyy outdated. sorry.

  25. vanbadai says:

    Trading is like a journey. It takes time to master it. Managing our emotion is the most crucial. Usually it’s the greed that will bring you down. When trading, always trade to win, or at least only lose a little fraction of your capital, that’s why we stop loss is important. I’m a full time private trader and I’m finding that there’s no single technique that is the best, combination of those techniques are. Difficult is you need to master one technique at a time before you can combine it.

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