Quote:
Originally Posted by iceoverflow
This question is for Helene who talks a lot about Bollinger Bands, but anyone feel free to respond with information. I am coming to Forex with an equities and futures trading mindset where I could tell how much volatility was around with the ranges of the candlesticks. Now I was never 100% correct, but pretty close especially with the use of other indicators. What do you think that the real advantages of Bollinger Bands are?
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Hi iceoverflow!
Bollinger Bands actually show to support and resistance of the market. You can also see breakouts and use BB to trade range markets. There are a lot of ways you can use the BB to trade. You can see a more detailed explanation on how BB is used at the following link
http://forexforums.dailyfx.com/chatting-helene/84798-bollinger-band-1-a.html. What I think you should do however, is use other indicators as supports as well, such as RSI or even the
FIB! I personally prefer to use the BB as the main indicator with FIB. When you can catch the bollinger bounce, you basically can go in and out of the market by range trading, although I prefer to longterm trade, but if you can catch the BB bounce, it would be great too!
