Forex Trading -Learn and trade with me

Learn online forex trading - The Bands of Bollinger are strong

Bollinger bands is one of the most widely used technical indicator that tells about market trend - it could be any market like forex or stock or commodity or anything.

What is Bollinger Band -

Bollinger bands were originated by John Bollinger, it consists of a centre line and 2 price lines - one above and one below the centre line. The centreline is EMA (Exponential Moving Average) while price lines are standard deviation.

How to use Bollinger Band -

It is assumed that when Price touches upper price line, that means that the currency pair in online forex trading is overbought. Opposite when the currency touches lower price line. However remember this is not the case everytime.


How does Bollinger band identify a price explosion -

It is said that when the upper and lower price lines contract and get very close to each other, it is an indication that price in online forex trading market is about to explode very soon.

Personnally I do not use Bollinger bands. Its because using too many indicators may spoil the trading plan and that makes missing lot of good trading opportunities as one technical indicator may contradict the other. Thats why I generally use only 2-3 indicators to make a trade in online forex trading.

Thats all in today's session on online forex trading. Very soon I'll put up the details on the trade that I have made on NZD/USD.

So visit soon to learn more on online forex trading.