Trading Bollinger Bands

Bollinger Bands
In Continuation of our series of Learning Technical Indicators here by i present one more Indicator
In our last we have learned about RSI and it can be used for making some profitable trades, today i will explain about Bollinger Bands and how to use this indicator in your trading.

What are Bollinger Bands

Bollinger bands are drawn within and surrounding the price structure of a stock and  provides relative boundaries of highs and lows.

Bollinger Bands consists of 3 Bands:

1. Upper Band– A measure of volatility to the upside.

2. Lower Band–A measure of volatility to the downside.

3. Middle Band– A simple moving average which is normally set at 20 periods.
  Read the full story »