FOREX THEORY
Bollinger Bands in a Trending
Market
One tool that is often used for
range-bound strategies can also be helpful in trend discovery. We’re talking
about Bollinger bands or just Bands.
One thing you should know about
trends is that they are actually quite rare. Contrary to what you might think,
prices really range 70-80 percent of the time. In other words, it is the norm
for price to range.
So, if prices deviate from the
“norm” then they must be in a trend right? What is one of the best technical
tools we have mentioned in the previous grades that measure deviation?
If you said a ruler, we give you
mad props for effort.
If you said Bollinger bands, we’ll
give you cyber milk and cookies! Here, take some.
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