1.0 Introduction
Bolling Bands are technical trading tool that was invented by John Bollinger in the early 1980s. The main usage of Bollinger Bands is precisely explaining the meaning of the high and low. Defining the prices during the upper bands at a higher rate and low bands at the low ban might help in reaching the methodical interchange choices.His bands explain higher and lower band of the market in relation with values. When trying to interpret the cost of actions, this is very useful. Degree of the alliance, deciding about the objectives for a certain trade, getting into a position to buy and sell the sighs for the currency pair and ability to get a trend streak are some of the key elements of Bollinger Bands.
The Moving Averages that are being used in analyzing the equity trade have the same purpose as the Bollinger Bands. Three lines of moving averages are existent; higher band, lower and the middle. The middle one serves as the starting point of high and low bands. The line that determines volatility is actually the difference of the upper and the lower band with the inner line.
Dukascopy published few articles about Boolinger Bands strategies in the past. I suggest to …
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