Wednesday, October 10, 2018

Secret Techniques Setting Indicators of the Best and Most Accurate Bollinger Bands

Trading strategies use the most accurate indicators and accurate tricks for binary or forex trading on iq options, one of which uses the Bollinger Bands indicator.

The most accurate trend indicators that are often used by traders are Bollinger bands, and will be even more robust when combined with other indicators.

Basically, all indicators are good, depending on the traders who use them, so choose and use indicators that are appropriate for each trading style.

Bollinger Bands is a useful indicator to help measure market volatility and estimate the range of normal price movements (range).

When the price movement exceeds the normal limit, that's where we use it to take trading positions.

How to use the Bollinger Bands indicator

1. Click the Indicator List, then select Bollinger Bands
2. Select the advanced settings, then click Use
3. As this is the appearance of the Bollinger Bands indicator

Explanation of the Bollinger Bands Indicator

Bollinger Bands consists of 3 lines, namely:
  1. Upper Bands Line (Upper Line)
  2. Middle Line (Middle Line)
  3. Lower Bands Line (Bottom Line)

The Middle (midline) line on the base is the line from the Moving Average indicator with period 20. It functions as a calculation basis for Upper bands and Lower Bands.

The distance that occurs between Upper Bands and the Lower Bands is influenced by the volatility that is happening.

The wider the distance between Upper Bands and Lower bands, the greater the volatility that occurs, and vice versa.

Bollinger Bands helps traders to analyze whether the market is crowded or quiet based on the volatility that appears on the indicator.

1. Bounce Trading Strategy

This simple strategy utilizes the Upper Bands Line and Lower Bands Line as support for dynamic resistance and support.

  • Upper Bands as dynamic resistance
  • Lower Bands as dynamic support
  • Middle acts as a target

Price movements will tend to bounce back to the middle (middle) after the price reaches the upper line (Upper) or the lower line (lower).

This pattern of movement that we will use to take a trading position. The way is that we will take entry
  • CALL / RISE, When the Red candlestick reaches the bottom line (Lower), wait for confirmation of the Green candle
  • PUTT / DOWN, when the Green Candlestick reaches the top line (Upper), wait for confirmation of the appearance of the Red candle
2. Breakout Trading Strategy

With Bollinger bands, we can find out the breakout opportunities. As I explained above.

Bollinger bands tend to narrow if the market is quiet, which means that market participants are not sure where to go.

The Seller and the Buyer are equally strong, eventually the price moves in a narrow distance. The movement of Bollinger bands also narrows.

Breakout that will occur is marked by the movement of Bollinger bands (Upper and lower) quickly / suddenly widened and the price penetrates the Upper or Lower lines.

Now this moment is what we will use to take a trading position. The entry signal is:
CALL / RISE, if the Upper bands line is penetrated by price
PUTT / DOWN, if the Lower bands line is broken by price

3. Combination Strategy for Bollinger Bands

 IndicatorsInstalling a lot of indicators if we can use them all is good, but sometimes if too much results in difficulty concentrating.For that, install indicators as needed, in this strategy I will combine the Bollinger bands indicators with indicators: 

Fractal, Parabolic SAR, and Stochoastic Oscilator.The signal entry is: when all the indicators we put show the same entry signal.Previously we had to know each signal entry on the indicator that we would use.


Post Top Ad

Your Ad Spot