Bollinger Bands are a favourite trading indicator among professional traders. Bollinger Bands were developed and made famous by legendary technical trader John Bollinger and are plotted 2 standard deviations away from a simple moving average. The usual moving average used is the 20 day.
When market volatility increases, Bollinger Bands will widen and move further away from the average. Conversely, when volatility contracts, the Bands will move closer together.
Combining Bollinger Bands with a Bollinger Band width indicator can be an awesome early indicator of whether a stock is likely to increase or decrease in volatility going forward.
In this video, you’re going to learn how to spot high probability set-ups using Bollinger Bands including some real life examples.
I hope you enjoyed this short tutorial, if you have any questions, let me know in the comments.
