Here's a chart with Bollinger Bands and the original version of Andersen Bands (aka yucky name: Standard Error Bands) with the same time frame and defaults. In no way am I discrediting BBs. As stated I think they are excellent for "squeezes". In terms of swings and trends where following and tracking the price is important, the original version of AB were designed for such. Check the arrows on the chart for an example of how this can be accomplished.
The Bollinger Band
- Thread starter padutrader
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Here's a chart with Bollinger Bands and the original version of Andersen Bands (aka yucky name: Standard Error Bands) with the same time frame and defaults. In no way am I discrediting BBs. As stated I think they are excellent for "squeezes". In terms of swings and trends where following and tracking the price is important, the original version of AB were designed for such. Check the arrows on the chart for an example of how this can be accomplished.
thanks for explanation
so bollinger gives later signal
what are red and yellow arrows:sell and buy or something else
My pleasure. I think of the two sets of bands as having different purposes based on the construction methods for different applications.
The arrows depict a simple buy sell system going long when the upper band is crossed and short when the lower band is crossed.
i am having success trading reversals too with BB but i am pretty could at price action analysis but with PA alone i could get the confidence;with both i am doing well. finally!
i really think all different technical analysis systems are different roads to the same destination
Good job! My thoughts are if you are successful then perhaps ignore everything else and keep doing what works for you.
It is important to understand the meaning behind the indicator in this case the band.
Why does the trader buy at the lower band and sell at the upper band;why do the bands close and become flat? :this means that the volatility of the market is decreasing.
If the volatility of the market is decreasing price action traders notice that the bars are getting smaller and so it is ok to fade the market.
Again the market is the same for both BB users and price action players. both come to the same conclusion focusing on different things
Why does the trader buy at the lower band and sell at the upper band;why do the bands close and become flat? :this means that the volatility of the market is decreasing.
If the volatility of the market is decreasing price action traders notice that the bars are getting smaller and so it is ok to fade the market.
Again the market is the same for both BB users and price action players. both come to the same conclusion focusing on different things
Good points. In understanding "which" volatility is being measured one can better understand what it represents e.g. standard deviation around the mean vs standard error around the trend. This is likely why most people look to fade BB tops and bottoms. Conversely, price exceeding the AB top or bottom is new information that may suggesting a shift in direction.
by posting here i am getting mocked....but at the same time i am learning a lot because a lot of good comments are coming.
of course not all my posts are mocked: the ones which are good are appreciated , and the mockers acknowledge the good one ones by their silence
Hopefully the point about mocking was not directed towards me. Please do not take anything I say as mocking you in any way. Hopefully the dialog continues in a constructive and beneficial way with several people adding flavor. It is a great topic!
no i also did say some good comments are coming:the mockers will not discuss technicalsHopefully the point about mocking was not directed towards me. Please do not take anything I say as mocking you in any way. Hopefully the dialog continues in a constructive and beneficial way with several people adding flavor. It is a great topic!
exchange of ideas helps everyone