Bollinger Bands: Learn, Role
For generally compact ranges of a security, such as many currency pairs, Bollinger Bands act as relatively clear marks for purchasing as well as trading. This can result in stop - outs and frustrating losses, though, so traders deem other motives while placing trades in relation to the Bollinger Bands. First, a trader must conceive how Bollinger Bands are place up. There is an upper and lower mass, each set faraway of two traditional deviations from the security's 21 - day simple transporting average. The Bands show the volatility of the rate or price in relation to the average, as well as sellers can expect moves in cost anywhere between the two teams.