Created by John Bollinger in the early 1980 to help an volatilitas and compare the relative price in a period of analysis. Bollinger bands themselves actually consist of three lines that formed a kind of belt restraint against price movements. However, its application in the middle Bollinger Bands are often not shown because the diameter is only the usual Moving Averages
As in terangkan above, the Bollinger Bands own shapes like a belt to become a barrier price movements. When the seimbangan between the demand and supply, the Bollinger Bands will widen more than the condition of balance. If there is a balance which means the market will move sideways in the Bollinger Bands will be more narrow than usual because it is not as fast as the rate when the price uptrend or down trend.
As volatility indicator, actually Bollinger Bands can not stand on its own. This indicator is usually used only as an early indicator to measure the relative price volatility and (volatile = easily changed - = level of volatility in the speed of change). Bollinger Bands indicator is not the action, so if using indicators suggested this one, also use other indicators before making a decision to buy or sell.
Characters Bollinger Bands
Each indicator is certainly a character of each. So also with this one indicator. One thing that is unique is that it has Bollinger Bands enable each person to interpret the indicator this way each. Even John Bollinger himself, the creator of the indicator said that the most interesting in the analysis using the Bollinger Bands are considering how each person using it. Although there are some basic rules in the Bollinger Bands, but it could be a trader with other traders who have different ways and different in the use of the Bollinger Bands. Here is a general character applicable to the Bollinger Bands
• Bollinger Bands are early indicators that can not be used as an indicator action.Harus diapakai with other indicators. Specify one of the best indicators for your action as an indicator, but the indicators do not wear more than one action. Some of the indicators of good action is RSI, Stochastic and momentum. It's up to you.
• In general, prices will move in the belt, but can also move beyond the price of the belt. This could mean that will happen, or even reversal of the trend is in progress. To find out we can see the indicators that we use the action.
• Determining the Bollinger Bands are also in effect here. The small period used the width of the belt will be so small and vice versa.
• When prices are beyond the upper band or the same, while the RSI is still below overbought zone, then this means there will be a continuation of trends that are happening. Conversely when the RSI is overbought and is diarea are overbought leave the area, then this means there will be a trend reversal in some candle fore.
• When prices are lower outside the band or the same, while the RSI is still under the oversold zone, then this means there will be a continuation of trends that are happening. Conversely when the RSI is oversold and is diarea leave the area is being oversold, so this means there will be a trend reversal in some candle fore
actual pemaduan Bollinger Bands with other indicators can we do when we understand the use of other indicators correctly. The use of appropriate indicators that would result in decisions that support and reinforce each other so that the benefits. The more we understand the use of indicators of the action we take advantage of opportunities as Bollinger Bands volatilitiy indicator.
Use Bollinger Bands
Although Bollinger can not be used alone, but there are some indications open Buy / Sell that we still can get through the Bollinger Bands, especially through middle band. Remember, in the middle band is basically indicator Simple Moving Average. This means that what applies to high schools also apply to the middle band:
• Middle band under the price, then this indicates Bullish trend.
• Middle band on the harag, indications Bearish trend.
• Perpotongan between the middle and the price band, an indication of the trend
Double bottom buy
This will occur when the price cut through lower band twice in succession. There is a double bottom is an indication of the price increase will occur. However, to ensure, needed confirmation penetrate middle price band. If you have cut through middle band, it can be estimated uptrend will occur where we need to buy a position
Reverse of the double bottom is a double top buy sell the circumstances in which penetrate upper price band and validated with perforation middle band, too. This means there will be a decline in prices which we have to open the position to sell first gain.
As in terangkan above, the Bollinger Bands own shapes like a belt to become a barrier price movements. When the seimbangan between the demand and supply, the Bollinger Bands will widen more than the condition of balance. If there is a balance which means the market will move sideways in the Bollinger Bands will be more narrow than usual because it is not as fast as the rate when the price uptrend or down trend.
As volatility indicator, actually Bollinger Bands can not stand on its own. This indicator is usually used only as an early indicator to measure the relative price volatility and (volatile = easily changed - = level of volatility in the speed of change). Bollinger Bands indicator is not the action, so if using indicators suggested this one, also use other indicators before making a decision to buy or sell.
Characters Bollinger Bands
Each indicator is certainly a character of each. So also with this one indicator. One thing that is unique is that it has Bollinger Bands enable each person to interpret the indicator this way each. Even John Bollinger himself, the creator of the indicator said that the most interesting in the analysis using the Bollinger Bands are considering how each person using it. Although there are some basic rules in the Bollinger Bands, but it could be a trader with other traders who have different ways and different in the use of the Bollinger Bands. Here is a general character applicable to the Bollinger Bands
• Bollinger Bands are early indicators that can not be used as an indicator action.Harus diapakai with other indicators. Specify one of the best indicators for your action as an indicator, but the indicators do not wear more than one action. Some of the indicators of good action is RSI, Stochastic and momentum. It's up to you.
• In general, prices will move in the belt, but can also move beyond the price of the belt. This could mean that will happen, or even reversal of the trend is in progress. To find out we can see the indicators that we use the action.
• Determining the Bollinger Bands are also in effect here. The small period used the width of the belt will be so small and vice versa.
• When prices are beyond the upper band or the same, while the RSI is still below overbought zone, then this means there will be a continuation of trends that are happening. Conversely when the RSI is overbought and is diarea are overbought leave the area, then this means there will be a trend reversal in some candle fore.
• When prices are lower outside the band or the same, while the RSI is still under the oversold zone, then this means there will be a continuation of trends that are happening. Conversely when the RSI is oversold and is diarea leave the area is being oversold, so this means there will be a trend reversal in some candle fore
actual pemaduan Bollinger Bands with other indicators can we do when we understand the use of other indicators correctly. The use of appropriate indicators that would result in decisions that support and reinforce each other so that the benefits. The more we understand the use of indicators of the action we take advantage of opportunities as Bollinger Bands volatilitiy indicator.
Use Bollinger Bands
Although Bollinger can not be used alone, but there are some indications open Buy / Sell that we still can get through the Bollinger Bands, especially through middle band. Remember, in the middle band is basically indicator Simple Moving Average. This means that what applies to high schools also apply to the middle band:
• Middle band under the price, then this indicates Bullish trend.
• Middle band on the harag, indications Bearish trend.
• Perpotongan between the middle and the price band, an indication of the trend
Double bottom buy
This will occur when the price cut through lower band twice in succession. There is a double bottom is an indication of the price increase will occur. However, to ensure, needed confirmation penetrate middle price band. If you have cut through middle band, it can be estimated uptrend will occur where we need to buy a position
Reverse of the double bottom is a double top buy sell the circumstances in which penetrate upper price band and validated with perforation middle band, too. This means there will be a decline in prices which we have to open the position to sell first gain.
