Bollinger bands are used to measure a market’s volatility. Basically, this easy to learn indicator tells us whether the market is quiet or whether the market is volatile. When the market is quiet, the bands contract; and when the market is crazy, the bands expand. There are many ways to apply Bollinger Bands to your trading. It is said that everything you need to know about price action is contained within the bands.
You can use the bands to find entry points, exit points to set your stop loss and to calculate your risk/reward ratio. This indicator is said to be magical. It has withstood the test of time to be one of the most widely used indicators for online traders
Barry Norman The Director of Investors Trading Academy as well as a published author and educator. Barry brings with him over 35 years of financial market knowledge and experience. He holds an MBA in Finance and Economics from UCLA and an undergraduate degree in Economics from the University of Maryland. Barry was award the title of “Best Education in Europe” by Global Banking & Finance. Barry is also a presenter for the MoneyShow and many well-known news sources.