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Bollinger Band is one of the best indicators you will ever get. You can easily find out the market volatility and trade easily via the same. This indicator works best in any market whether you are trading in the Stock market, Forex Market, Future Market & more.
What is Bollinger Band?
Bollinger Band is a trend indicator designed by John Bollinger in 1980. This indicator uses three lines to identify the trend. Where the Middle line is the Simple moving average of the lower line and the upper line whereas the lower and upper line is the standard deviation of the Simple moving average. This indicator is really easy to work with. When the Bollinger Band line shrinks it indicates low volatility and you can take more trades here similarly when the Bollinger band line expands it indicates high volatility and you can take fewer trades here.
Setup Bollinger Band in Pocket Option
Once you have logged in to your Pocket Option account. Click on the indicator button on the upper left-hand side and select Bollinger band from the menu.
You can change the colours for better visibility.
Make a buy trade when the price touches the upper band
When the price touches the upper band in an upward direction. This indicates that the market is bullish and we make a buy trade here.
Make a sell trade when the price touches the lower band
When the price touches the lower band in a downward direction. This indicates that the market is bearish and we make a sell trade here.
Trading with B- Bands is very easy. You just need to remember how it works?. You must be wondering what is the use of the middle line. Well, this line is equally important as it gives you strong signals. when the price takes the support of the midline and the price bounce back up It signals a bullish trend and here, we should take a buy trade. Similarly, When the price takes the resistance of the midline and the price bounce back down continuously it signals a bearish trend here we need to take a sell trade.
The best way to understand and analyse the B-Bands is by practising the same in the Pocket Option demo account for free. Here, you can easily check How does the indicator behaves and If it is suitable for you or not. Do comment below If the article helped you or not.
Till then!! All the Best!