Are they any good?
Do they Rock?
Do they Rock?
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The Bollinger Band
- Thread starter padutrader
- Start date
yep i started out with them.
did not do well, not Bollinger"s fault
but i do not think any indicator can be used without some idea of price action, ALONG WITH A HEALTHY DOSE OF idea of market pulse,which you can only get with experience.
But volatility is an important characteristic of market and i think they are volatility bands.not sure though
Yes....they are useful. Here are a few scenarios.
With daily data, previous month was a 12 month high.
Daily close is below the lower Bollinger band.
There is a strong probability that the previous high will be tested.
Another:
With daily data, previous month was a 12 month low and was below lower Bollinger band.
The prior two weeks were down.
Todays close is up big.
There is a strong probability that there will be a good sized bounce before further selling.
With daily data, previous month was a 12 month high.
Daily close is below the lower Bollinger band.
There is a strong probability that the previous high will be tested.
Another:
With daily data, previous month was a 12 month low and was below lower Bollinger band.
The prior two weeks were down.
Todays close is up big.
There is a strong probability that there will be a good sized bounce before further selling.
They can come in handy. I've been looking at BBs on crypto lately and seeing some value.
Are they any good?
Do they Rock?
Maybe this is your problem you want to know a little of everything and not a lot of one thing.
“Chase two rabbits catch none”
I have been looking at his bands for 15 years. That being said, I still want to see his yacht too...
The utility of *any* technical indicator depends on
1) the constancy of the market, with respect to history [the market-lagging inputs]
2) the intention of the indicator to draw attention to trend or to trend-breaks (as in, BBs)
3) the look-back parameters (which 90% of traders leave as God-given and fixed)
4) how the indicator is used: whether as an auto-trading trigger or for discretionary support.
That said, "Are Bollinger Bands any good?" Yes.
1) the constancy of the market, with respect to history [the market-lagging inputs]
2) the intention of the indicator to draw attention to trend or to trend-breaks (as in, BBs)
3) the look-back parameters (which 90% of traders leave as God-given and fixed)
4) how the indicator is used: whether as an auto-trading trigger or for discretionary support.
That said, "Are Bollinger Bands any good?" Yes.