Forex Bollinger Bands Strategy – http://www.ForexCandlestickMagic.com
Forex Bollinger Bands are one of the most reliable indicators. In this video I have explained what are bollinger bands, upper band, lower band. How to setup up Bollinger bands on forex chart, what are the points to be kept in mind while using this technical indicator. And also a very simple and effective trading strategy using Forex Bollinger bands
The most common setup is 20 moving average and 2 standard deviation. The 20 moving average is popular because it reprsents one full trading interval such one entire month. The 2 standrad deviation is a statistical term and it tells that 90% of scenarios will fall under 2 standard deviation.
I have also mentioned the point in the video that Bolling bands work best when currency pair is moving within a range. If the currency pair is moving in a particular direction, Bollinger bands is not that accurate.
I have also covered concept of “Neck”.
By the way if you want to learn more about bollinger bands, you can also visit – https://en.wikipedia.org/wiki/Bollinger_Bands
Next I have covered a very effective Forex Bollinger Bands trading strategy. It is highly simple and easy to use. I have used 100 EMA to decide if long trades should be placed or short trades.
Double bollinger band is an advanced concept which I’ll cover in a separate video. I have also come across suggestions of using 50 moving average based bollinger bands. According to me they are not as sensitive as required for placing forex trades.
Bollinger bands work extremely well with candlesticks, double top, double bottom, head and shoulders and other common trading patterns.
Watch this video and if you like it, please leave your comments.
Here is the link for forex Bollinger bands video – https://www.youtube.com/watch?v=G1f7PcLfE9k