Discover how to use Bollinger Bands to improve your trading in under 5 minutes!
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Developed in the 1980s by John Bollinger, Bollinger Bands are a popular technical analysis tool that provide the trader with a relative definition of high and low. They incorporate the idea that volatility is dynamic, so the bands adapt as volatility increases and decreases.
Bollinger Bands can be used to identify W-Bottoms and M-Tops and help determine the strength of a trend. They can also help traders easily recognize highs and lows and can be used to find overbought and oversold areas. Since they are dynamic, they can be used on different securities with the standard settings.
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