oussama94
05-28-2017, 01:30
Bollinger bands is a technical analysis tool
that helps measure volatility, and are made up
of two lines moving around an exponential
moving average. The lines above and below
the EMA form the Bollinger bands and are
designed so that 95% of prices fall within the
bands. The bands widen when market volatility
increases and narrow when it decreases.
This is a useful feature because if the average
price move is 50 pips in a quiet market and
expands to 100 pips in a volatile market, you
will need to adjust your trading to account for
these bigger moves. The price that you choose
to enter the market will move further away from
the market in volatile times, giving a better
entry that is adjusted to the current situation
rather than past activity. Furthermore,during
times of high volatility when bands are wide,
that helps measure volatility, and are made up
of two lines moving around an exponential
moving average. The lines above and below
the EMA form the Bollinger bands and are
designed so that 95% of prices fall within the
bands. The bands widen when market volatility
increases and narrow when it decreases.
This is a useful feature because if the average
price move is 50 pips in a quiet market and
expands to 100 pips in a volatile market, you
will need to adjust your trading to account for
these bigger moves. The price that you choose
to enter the market will move further away from
the market in volatile times, giving a better
entry that is adjusted to the current situation
rather than past activity. Furthermore,during
times of high volatility when bands are wide,