Bollinger Bands is one of the perfect indicators that can be used in both Swing trading and intraday trading. this indicator was developed by one of the most famous technical analysts John Bollinger in 1980. The main objective of creating this indicator was to measure the volatility of the security price. volatility is measured using standard deviation which changes with an increase or decrease in the price.
This indicator is made from the composition of three lines named upper band, lower band, and middle band. According to the experts, the price of an asset or a security ribbons around these three lines and it is very rare to see the price breakout.
Once, you logged in. click on the indicator button and click the indicator name from the menu.
You can also change the colour of the indicator line plus you can change the period of the indicator. once, you are done click on the apply button.
How to trade with Bollinger Bands on Expert Option?
Before, I teach you how to trade with Bollinger Bands on Expert Option. you need to understand a bit about the indicator.
As said above this indicator is made from the compositions of three moving averages line name upper band, middle band and lower band. where the middle band is made from 20 periods moving average whereas the other two lines act as support and resistance for the price where the price ribbons around these two. the lower band acts as a support level and the upper band as a resistance level. when the price touch the lower band the price is most probably going to bounce back up. similarly, when the price hits the upper band the price is most probably going to bounce back down.
Best time to place the buy trade
When the price touches the lower band it signals an upcoming bullish trend. however, the best time to place a buy trade is when you start seeing a continuous white candle or bullish trend.
Best time to place the sell trade
Similarly, when the price touches the upper band it is a signal of an upcoming bearish trend. however, the best time to place the sell trade is when you start seeing a continuous blue candle.