"All in all, Bollinger on Bollinger Bands is a gem. within 10 minutes of opening it , it went on my list of the five best technical analysis books ever." - Active Trader. Editorial Reviews. Review. Get the word from the Master! the indicator discussion is heaven Due to its large file size, this book may take longer to download. His Bollinger Bands sharpen the sensitivity of fixed indicators, allowing them to graphs, this remarkable book will be essential reading for all serious traders.
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In this top selling book, John Bollinger explains how to use his extraordinary technique to effectively compare price and indicator movement. Bollinger on Bollinger Bands eBook: John Bollinger: techetolyson.cf: site Store. Due to its large file size, this book may take longer to download. Bollinger on Bollinger Bands book. Read 6 reviews from the world's largest community for readers. John Bollinger is a giant in today's trading community.
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VIXY Chart Does anything jump out that would lead you to believe an expanse in volatility is likely to occur?
Look hard and resist the urge to scan a few inches down the page for the answer. Let me tell you when you are trading in real-time, the last thing you want to do is come late to a party. More times than not, you will be the one left on cleanup after everyone else has had their fun. During this time, the VIXY respected the middle band.
There was one period in late November when the candlesticks slightly jumped over the middle line, but the candles were red and immediately rolled over. However, in late January, you can see the candlesticks not only closed above the middle line but also started to print green candles.
Now, one could argue that this wasn't enough information to make a trading decision. That is a fair statement. You would need a trained eye and have a good handle with market breadth indicators to know that this was the start of something real. There was one other clue on the chart. Can you see it? This one is a little more obvious and it's the pickup in volume. U Shape Volume There is the obvious climactic volume which jumps off the chart, but there was a slight pickup in late January, which was another indicator that the smart money was starting to cash in profits before the start of spring break.
Why is this important? It's always good to know what other traders are thinking as it can help you develop your edge. My Journey with the Bands It's safe to say bands is probably one of the most popular technical indicators in any trading platform.
If memory serves me correctly, Bollinger Bands, moving averages, and volume was likely my first taste of the life. Well as of today, I no longer use bands in my trading. That doesn't mean they can't work for you, but my trading style requires me to use a clean chart. So, how did I end up abandoning the bands?
I tend to over analyze setups; it's what I do. Therefore, the more signals on the chart, the more likely I am to act in response to said signal. This is where the bands expose my trading flaw. For example, if a stock explodes above the bands, what do you think is running through my mind? You guessed right, sell!
The stock could just be starting its glorious move to the heavens, but I am unable to mentally handle the move because all I can think about is the stock needs to come back inside of the bands. Day Trading in Flashback to , when I was just starting in day trading; I had no idea what I was doing.
Instead of taking the time to practice, I was determined to turn a profit immediately and was testing out different ideas.
One of the first indicators I put to the test was Bollinger Bands. It's one of the most popular indicators. I decided to scalp trade. I would sell every time the price hit the top bands and download when it hit the lower band. It's really bad, I know.
Bollinger on Bollinger Bands
From what I remember, I tried this technique for about a week, and at the end of this test, I had made Tradestation rich with commissions. The key flaw in my approach is that I did not combine bands with any other indicator.
This left me putting on so many trades that at the end day, my head was spinning. Flashback to , when I was just starting in day trading; I had no idea what I was doing. At the end of the day, bands are a means for measuring volatility.
How to implement
So, it's not something you can just pick up and use for download and sell signals. Just as you need to learn specific price patterns, you also need to find out how bands respond to certain price movements. This ability to identify the setups will help you avoid the false signals from the real ones.
This level of mastery only comes from placing hundreds, if not thousands of trades in the same market. Bollinger Bands in the Trading Community I went onto site to search for the most popular books to see who the leaders are in the space.
I'm not sure if this is because there aren't many people interested or if other traders stay out of the bands arena because John is so actively evangelizing the bands. The books I did find were written by unknown authors and honestly, have less material than what I have composed in this article. The other hint that made me think these authors were not legit is their lack of the registered trademark symbol after the Bollinger Bands title, which is required by John for anything published related to Bollinger Bands.
Conversely, when I search on Elliott Wave, I find a host of books and studies both on the web and in the site store. I am still unsure what this means exactly.
Bollinger on Bollinger Bands
With there being millions of retail traders in the world, I have to believe there are a few that are crushing the market using Bollinger Bands. I just struggled to find any real thought leaders outside of John. I write this not to discredit or credit trading with bands, just to inform you of how bands are perceived in the trading community. Bollinger Bands work well on all time frames.
Remember, price action performs the same, just the size of the moves are different.
Since their introduction, they have become one of the most widely used technical indicators by investors and technical analysts. Bollinger Bands are currently available on most of the stock market software and Internet charts in use and for good reason-they work! While many investors have heard of Bollinger Bands and use them, prior to this book there was no literature explaining how to use them properly.
This book is John Bollinger's answer to numerous requests for guidance. How will Bollinger Bands help you make better investments? They provide a relative definition of whether the current price is high or low.
Bollinger on Bollinger Bands
This book explains how that relative definition can be used to compare price action and indicator action to arrive at rigorous download and sell decisions. Starting with the basics and building to the complex, the book teaches the technical analysis process.
Learn which indicators to use and how to read charts. BB is very popular among traders all over the world. The middle band is a simple moving average , usually with the period of The outer bands are usually set 2 standard deviations above and below the middle band.
The Bollinger bands have something in common with the Envelopes indicator. MT will offer you 20 as period and 2 for deviation.
You can change these parameters if you want to. Notice that the smaller the period, the more trading opportunities will be offered by the indicator.
The number of false signals, however, will be greater as well. At the same time, when the period is big, the indicator becomes less sensitive. This is not suitable for the markets with low volatility.
To make a conclusion, it would be wise to adjust the Bollinger bands for the asset you trade. The BB can be used on all timeframes, although the indicator is more common for the intraday one. Bollinger bands help to determine how big is the deviation from the average price of a currency pair. There are also strategies that imply trading reversals from the outer bands.
The slope of BB and the position of the price relative to the middle band allow judging the direction of the current trend.While many investors have heard of Bollinger Bands and use them, prior to this book there was no literature explaining how to use them properly.
I have been a breakout trader for years and let me tell you that most breakouts fail. Most often the price spends no more than 4 candlesticks beyond an outer Bollinger band. Five stars, all the way. Get A Copy. M-top is the opposite of a W-bottom. Unless one wants another TA book in the shelf,it is not worthwhile spending that money.