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 …
Comments
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
forex?? I prefer to stay away from forex…futures is my fav..:D
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!
Thank you again David, you always manage to simplify things!!!! 
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.
Excellent. Thank you.
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.
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.
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.
iuse the MACD STRATEGY for consistant profits
how much is he willing to lose when he does have a bad day?
He does a 2 to 1 ratio (risk vs reward). So if his target is 20 pips, his stop order is set at 10.
sounds like a good system. thanks
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
It’s not really a full system, just one part of trading. If you want more info send me a private message.
Cheers.
i hate how hard it is to see user ratings in the new youtube? does anyone know if there is an easier way? can you rate stars instead of only Like andDislike?
check my channel for video’s about daytrading and trade like me in forex (EUR/USD, CAD/JPY etc.), stocks (coca-cola, phillips etc.), commodities (gold, silver, oil etc.) and indices (Nasdaq, Nikkei etc.)
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Good Description
I quite like this video very similar to the techniques we teach traders. Well done great work.
Forex is a scam, you are trading against goldman sachs and Lehman brothers Algo trading Robots, they have no spread…you do, trust me . Ever wonder Why all charting packages are free in forex but foro other instruments you have to pay. Well thats because its a scam. LONG TERM TRADING ONLY.
@km703 Exactly nothing is for free, David gets money from FXCM as an Introducing broker.
June 3rd, 2009 at 6:54 am
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.