Price action trading is more than just learning price patterns like the Engulfing candlestick and Head & Shoulders. We often overlook a crucial aspect of price action: its volatility. How much the market moves is as important as which direction the market moves. To integrate volatility into our analysis, Bollinger Bands offer a robust tool. […]
Double Top and Bottom Trading With Bollinger Bands
Bollinger Bands is a versatile trading indicator that includes a volatility measure. It plots directly over price. Hence, it does not distract us from price action while offering a helpful benchmark. One way to use the Bollinger Bands effectively is to clarify chart patterns. As Bollinger Bands reflect market volatility, they are a good gauge […]
4 Effective Ways to Trade a Channel
Price channels are helpful indicators for maintaining focus. Unlike many other trading indicators, they plot directly over price action. Instead of distracting you from the price action, channels offer a useful framework for analyzing market movement. There are many flavors of price channels out there. But their recipe boils down to two ingredients: A representative […]
Trading the Bollinger Band Squeeze
This Bollinger Bands tutorial introduces the Bollinger Squeeze trading strategy. John Bollinger designed the Bollinger Band Squeeze as a way to profit from markets that are poised to break out of a consolidation area. This innovative tactic uses not just Bollinger Bands but also a related metric called Band Width. To get an in-depth understanding of the […]
5 Bollinger Bands Trading Strategies You Should Know
Bollinger Bands are one of the most popular trading indicators. It’s easy to see its appeal. Bollinger Bands use the basic statistical concept of standard deviation. For this, it is easy to understand. Bollinger Bands form an envelope around price action. It does not divert your attention with an extra indicator panel and augments price […]
The Ultimate Guide to Volatility Stop-Losses
Placing a stop-loss requires delicate balance. We want a stop-loss to be as tight as possible, while giving the trade enough room to whipsaw. The key to this balancing act is volatility. According to Wikipedia, volatility is: the degree of variation of a trading price series over time… You need the stop-loss to be tight […]
