Technical Analysis

Guide to Bollinger Bands

Submitted by currenciesfx on Tue, 04/12/2022 - 08:00

A Quick Guide to Bollinger Bands

Technical analysis is considered by some, essential for success in the Forex market. One well-used indicator often used to measure volatility is Bollinger Bands. This was a tool invented by a well-known technical trader, John Bollinger in the 1980s, whereby two Bollinger bands, the price of the currency, and a simple moving average are plotted onto a chart. An upper and low band are placed two standard deviations away from the moving average.