![]() ![]() In a trending market, volatility comes often.Tags in the bands are not considered as signals, like a tag of the upper band is not sell signal while tag in the lower band is not a buy signal.In order to recognize price patterns such as “M” tops, “W” bottoms, momentum shifts, etc, BB can be used.In the case of more than one indicator, the indicators should not be directly related to one another.Momentum, volume, sentiment, open interest, inter-market data, etc are the important factors in this indicator.The bands considered as a comparison tool between price and indicator action to point out the buy-sell decision.Low price at the lower band and high price at the upper. Bollinger bands define the price level.We are listing these rules below: Rule 01-11 The developer John Bollinger has set 22 rules to trade the Bollinger Bands Indicator. John Bollinger’s 22 Rules For Using Bollinger Bands You can also choose the color of the 3 bands as well as the channel fill color.By default, it is a simple moving average. You can also choose what type of moving average you want to use as the middle band. ![]() By default, this indicator uses 20-day simple moving average and 2 standard deviations which we can change as per our own requirement.The default parameters window of the indicator will open.From the Studies section go to BollingerBbands and click on it.From the MarketWatch select the stock you are going to trade. ![]() #Jstock bollinger indicators how toHow to set up Bollinger Bands Indicator on charts? We can use these observations to project price targets.
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