Tag: bollinger bands

Breakout Trading Strategies

Breakout Trading Strategies

Trading Strategies
Breakout trading strategies are quite popular just as trend trading strategies. In fact, compared to trend trading, breakout trading strategies are likely to come out higher. This is due to the fact that the markets tend to be in a range most of the times. The profit potential from break trading strategies are bigger and quicker, compared to trend based methods. With trend based methods, profits are not quick to come by. With a trend based trading strategy, you will have to hold on to your position for a prolonged period of time. The main benefit of using a breakout trading strategy is to capture the big gains based on the volatile breakouts. Despite the quick gains, breakout trading strategy can also result in significant losses. To avoid this, find an edge by getting familiar wi
Improved Bollinger Band Bounce Set ups

Improved Bollinger Band Bounce Set ups

Trading Strategies
Improved Bollinger Band bounce method can help you filter the trades using making the popular Bollinger Band Bounce trading set up into a really powerful trading strategy. Bollinger Bands are used for identifying both trends as well as volatility. There are many trading strategies based around Bollinger Bands, but they all fall into either walking the bands methods, which is a trend following strategy or a Bollinger Band bounce set up, which trades the pullbacks. Bollinger band bounce set ups work on the principle that when prices bounce off either the upper or the lower Bollinger Bands, prices tend to retrace or move in the opposite direction. But it begs the question as to what happens when a Bollinger Band Bounce set up fails? Of course, using stops here to cut the losers quickly...
Hikkake Pattern – Bollinger Band trading strategy

Hikkake Pattern – Bollinger Band trading strategy

Trading Strategies
Price action trading can be a rewarding trading strategy for traders who truly understand how the markets work. While there are many stand alone price action trading patterns and strategies such as shorting a bearish engulfing pattern or going long on a Piercing Line pattern, the problem is that these patterns which are based off just two price bars do not have a good success rate. Of course, any trader worth his salt would know not to trade purely based on candlestick patterns. With the Hikkake pattern, which comprises of 3 bars, the odds of having a successful trades are much higher, especially when combined with Bollinger Bands. The bands, as we know are used to measure volatility and is based on the concept of mean reversion. Combining price action with a pattern such as Hikkake ...
Trading with Bollinger Bands <sup>®</sup>

Trading with Bollinger Bands ®

Trading Indicators
Developed by John Bollinger in the 1980's, Bollinger Bands® is a technical analysis tool which comprises of two price channels (upper and lower bands) plotted two standard deviations (used to measure volatility) away from a moving average (the median line). Despite a decade since Bollinger bands was developed, it is still widely used amongst traders and market technicians to identify volatility and trends in the markets and can be used across different time frames. Bollinger Bands® are part of the standard technical analysis tools available by default and for free in most trading platforms. Also referred to as Bands, this technical analysis tool is used across various markets including Forex, Stocks and commodities. In this article, we'll take a look at Bollinger Bands® and how to imple

Bollinger bands in binary options trading

Trading Articles
Bollinger Bands® are volatility indicators represented by a simple moving average alongside a + and - deviation called the upper and lower bands. A detailed explanation of the Bollinger Band indicator can be found here. Bollinger Bands indicator makes for a great indicator as part of a trading system when it comes to forex. However, with binary options trading, traders will have to pay more attention to price action and Bollinger Bands. Unlike forex, where its easier to enter a trade with a fixed target price, with Binary options, traders need to consider an additional parameter, which is the contract expiry time. So for example, if there was a reversal at the upper bollinger band on the 15m chart, while it hints to a CALL option, the trader would have to choose their expiry times a