2 months ago • 5:46 mins
Getting to grips with technical analysis can seem like hard work. But if you master just one indicator, make it Bollinger bands. You can think of Bollinger bands as the “all-rounder” indicator – they cover a lot of ground and can be a powerful trading tool if you know how to use them. Here’s what you need to know...
John Bollinger invented Bollinger bands in 1983, when he was the chief market analyst for the Financial News Network. The indicator can tell you how volatile an asset is at a given point in time, and whether its volatility is increasing or decreasing. This can be useful information if you’re trying to buy near the bottom, sell near the top, or just sit back and stay in your trade.
The best way to explain Bollinger bands is with an example.
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