Bollinger Bandtastic

Here's a technique i've seen today to help identify good entry points and judge price action. Ideally this appears to be best applied in a ranging market and is another tool to be used in conjunction with other indicators. If you've never seen it before, then it's worth more investigation. Found in the majority of charting platforms have a look for the Bollinger Band indicator and add it to your chart. When asked for the standard deviation, set it to 2.

Here's a simple vid from Mike at informedtrades.com that gives you an insight.





If you prefer to learn from the man who invented Bollinger Bands then I suggest you pickup a copy of his book or visit his site at bollingeronbollingerbands.com. Have added this to my reading list. Johns contribution to technical analysis is globally renowned and his book has been translated into 8 different languages. Quite tempted to pickup his DVD seminar as well, but will see how I get on with the book first.