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12/19
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Introduction
This article will serve as a precursor to my next article in the series, where I go into detail describing my Bollinger Band Breakout Strategy. The article aims to provide a good foundation on Bollinger Bands as a technical analysis tool.
Bollinger Bands are named after the creator John Bollinger. As pictured on the right.
He is a technical analyst that developed the tool as a measure of volatility. He has wrtten a book titled "Bollinger on Bollinger Bands" and is considered the foremost expert on the subject.
He also currently runs a website and has a pay service where he analyzes the markets for setups as per different bollinger band strategies he has developed.
Without going into excessive detail on the construction of Bollinger Bands, to briefly illustrate I will provide some examples of different types of setups and information that can be obtained from the bands. The bands themselves are a measure of volatility based on previous price action. They utilize the simple moving average and the amount of data to be measured back is input by the user. The standard settings, and often the default is based on a 20 period Moving average.
I will illustrate some of the com…
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MobNaga avatar
MobNaga 30 Oct.

bbnads, I like too.

alincik avatar
alincik 31 Oct.

Well done! Good luck!

WallStreetBlog avatar

Interesting!

Valeriia_Novikova avatar

Thanks, useful article ! My best wishes to you!

forexfunction avatar

nice explanation .
this is really helpful for us.
we want more article like this.

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3/38
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There are many structural reasons that support a dollar bullish trend in the coming years but like anything else timing is the key.
Currently the outstanding US Dollar short positions are enormously and usually when everyone is on the same side of the boat the market goes in the opposite direction. But this current bearish trend will not reverse just because there will be a mythical big buy position that will reverse the trend.
A bearish trend will reverse when all the sellers who wanted to sell are in the market and there is no one left to sell. The same is the case with a bullish trend which will not reverse because some huge sell will come in the market but because there are no more buyers to lift the market.
So in our case it will not be a bullish dollar trend because some positive reasons. It will be the outstanding US Dollar short positions which are going to create the bullish trend least expected. It will be the biggest squeeze of our lifetime and when this short position will feel the pain of market going against them they will fuel the market new trend as they will be forced to buy back their shorts, which in turns will add more power to the new bullish trend.
The his
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Jignesh avatar
Jignesh 22 May

Well written Daytrader21 , although my view calls for a weaker USD.  Take a look at the weekly DXY Chart, there is a good case for a bearish triangle from 2008,  Most likely making a low sometime this year around 75, bullish 2015 inline with your analysis.  But would probably only retrace to current levels before turning lower to breakout.  Let me know what you think.

Daytrader21 avatar

Jignesh I move towards 75 DXY is quite a dramatic move and we really need a strong catalyst for that to happen, which at this point I just can't see it. The return of fx volatility will be a strong sign for a directional change in the dollar, so until that happen I see further consolidation. We need a really strong catalyst to break from current low volatility and consolidation zone and this can't happen in isolation, we need to look at credit markets and equity markets as well. Time will tell how it will develop I only hope I'm smart enough to see when I'm wrong:). Thx

doctortyby avatar

Just one article from you this month my friend? I want to see more useful info from you :D

Daytrader21 avatar

doctortyby Well, unfortunately I only have time for 1 article/month and I'm also running out of subjects:) so I'm not even sure I'll have something to write for the next month. I hope at least you enjoyed this one:)

doctortyby avatar

A good subject can be the ECB future Monetary Policy ;) ... I always enjoy your articles

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