Bollinger Bands

Band convergence in narrow neck first, the movement of the sharp price persist-band Party has warned that the market is about to trend. Prior to the strong trend in the opposite direction, break out the first, a motion often false.

Start movement in the normal range from one band, in the market, I carry to the other.

Shows that there is a possibility that the trend is strong movement out-of-band, to continue - as long as the price is not reversed immediately.

This trend one band signal embrace the possibility that strong tendency continues. Divergence (the price is rising or falling edge or flat, but if ... price MACD is heading in the opposite direction does break out in the direction of the MACD) wait for the momentum indicator of or in order to signal the end of the trend .

I am using BB's for display when a fault or breakout is imminent. When the band of the outside get very narrow, it is integrated with the price, it means to be ready for break out, you're up or down.

Because do not know whether you are going to break up or it goes down, at this point, it's dangerous to have a position. If you get a very narrow, for you until you see a clear direction, you can even end in loss, closing the old position of you, most will be better it band. If you do not want to close the old position at a loss, you want to hedge it at least. Please see details about the hedge in the second half of the Advanced Day Trading foreign exchange course.

BB's trading in the direction which you are trying to (MACD) Chaos momentum and I always break out, would not be able to tell you in which direction will do that is the (MACD) chaos oscillator, there is a momentum.

When you are using a slow time frame once in a while, I'm using the outer BB's as the target of the sales price limit yourself. If you are really wide after a big move, I am using the band in the middle as a target price of the limitations of their own band.

Bollinger bands are designed to capture most of the price changes. It is considered the price to move beyond the bottom band or the top, and a relatively high or (overbought) and (oversold) They are low.

Details of how to use the Bollinger Band:

First, BB's may target price etc. are used as I have described above. If the band is narrow, the price will jump up and down in the outer band in two. As mentioned earlier, this is not an optimal time to be placed in trade
As long as you can not raise a decent quick profit in 5 minute chart or 1, trading range is too narrow. As

If the range is not too narrow, if you ride it, you can book Pip and down. I will try this in a time frame of 5 minutes or 1 using the 5/9/18/50 EMA's. If you can not make up and down the 5-10 pips at least, you, please do not make it. Risk has become the whipsaws.

As long as the band is not too narrow, most of the time, you will be able to conduct transactions by bouncing off the outer band literally.

This is known as "Bollinger Bounce".

When you place a trade, just set your stop outside BB, the upper limit of the target price, sell the order outside the other bands.

Trade your approaches the marginal price rapidly, there is a need to remove a limit either first you, that it is just not likely to reverse & quickly just started the movement of the price index of all and the price 5-10 pips different if say, or let's run the price, and raise your limits. After that, or raise the stop to the entry point of either past it, to lock in one of the several benefits to the price or branch is reversed to you suddenly.

This is certainly what to do in a price breakout. If you want to continue up to the expansion breakout, price, adjusted upward to stop you to keep raising your limits (on this issue, which is referred to as trailing stop more later) Also, determine the profit of just more keep.

Ultra-advanced method of use of BB is that you want to use both of two sets of BB in the mid-range setting to 18. Set the 1 BB to the standard deviation of 3, leaving the standard deviation of the other one. It provides short-term support 6 / resistance line to you out to work. Target and stop your first is the outer band, band of your inner is used for short-term resistance and trailing stop you,
Is supported. In addition, you can, you may want to trade off the band on the inside of the two.

In this way, it is very similar to that you use the (ATR) average true range or Fibonacci, but can be understood with is easy to use much.