Share Market Trading Strategy with "Bollinger Band" Technical Indicator #6


"Bollinger Band" is a very powerful technical indicator for technical analysis. It is used for trend analysis also. In all the market condition Bollinger Band can be used, like volatile market as well as in side base market.

 

Bollinger Band have three lines, an upper, middle and lower. Middle Band is the Moving average and the distance between upper and lower band is standard deviation.

This is a very good settings for smooth signals.Moving average should be exponential. This setting is effective for Intraday as well as Swing trading.






















There are so many trading strategy can make with the using of Bollinger Band Technical Indicator.
In the above image shown one type of trading strategy.

When stock candle touch or cross Lower Band and then try to move upside then that is Buying signal generated by lower band but wait till the stock cross the Middle Band. After crossing the middle band make a Buy position.

In the slimier way when stock candle touch or cross upper band and then try to move downside then that is Selling signal generated by Upper Band but wait till the stock cross the Middle Band. When stock cross the Middle Band then selling can be done.
   

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