what is bollinger band indicator and how its works ????

What is bollinger band indicator and how its works ????

Bollinger band trading strategy Introduction Bollinger Bands ek popular technical indicator hai, jo trading mein istemaal kiya jaata hai. Yeh indicator price action aur market volatility ko analyze karne mein madad karta hai aur trading decisions ke liye signals provide karta hai. Explanation Bollinger band aik qisam ke shmaryati chart hain jo maliyati aala ya shai ke waqt ke sath qeematon aur utaar charhao ko numaya karte hain, 1980 ki dahai mein jaan Bollinger ke zareya paish kardah formuly k tareeqa istemaal karte hue maliyati tajir un charts ko tijarti faislon se aagah karne, khudkaar tijarti nizaam ko control karne, ya takneeki tajzia ke jazo ke tor par istemaal karte hain. Bollinger bad aik do jehti chart mein aik graphical band aur utaar charhao dikhata hy . Steps to be followed Agar aap Bollinger Bands ko use karke trading strategy banana chahte hain, toh neeche diye gaye steps follow karen: Step 1: Bollinger Bands indicator ko apne trading chart par add karen. Step 2: Bollinger Bands ke default settings mein 20-period simple moving average aur 2 standard deviations hote hain. Yeh settings ko change karne ke liye aap apne preference ke hisab se kar sakte hain. Step 3: Bollinger Bands ko price action ke saath dekhen aur jab price band se bahar nikale, toh yeh volatility signal deta hai aur trading opportunity provide karta hai. Step 4: Agar price band se bahar nikalne ke baad price trend mein change aata hai, toh yeh trend reversal signal deta hai aur aapko apni trading strategy ko modify karna chahiye. Step 5: Jab price band se bahar nikalne ke baad price trend continue karta hai, toh aapko usi trend ke saath trading karna chahiye. Step 6: Stop loss aur take profit levels ko bhi set karen aur risk management ko bhi dhyan mein rakhen. Conclusion Yeh strategy market ky trends aur price ki up aur down movement ke hisab se kaam karti hai, dosto zarori hy k isko demo account par trial karna chahiye aur phir apny real account par use karna chahiye. Trading mein hamesha risk management ka khyal rakhen aur emotion-based trading se bachein.

Bollinger band indicator Bollinger band forex market mein aik maqbol trading indicator hey day trading kay kam maqbol indicator hota hy laken kuch intraday trader es ka estamal mofeed samjhtay hein or day trading mein bhe es ka estamal kartay hein Bollinger Band indicator trading session kay doran scalping trading ke technique rakhay ge jes ko forex market ko stable karnay ke technique ke ja sakte hey How to trade Bollinger Band indicator forex market mein Bollinger Band par forex market mein trade kartay hovay trader ko financial market mein mokhtalef tarekon ka estamal karna chihay en trading mein day trading , trend trading or breakout trading shamel hotay hein Bollinger Band indicator ko dosray technical indicator kay sath melana shamel hota hey bollinger band kay sath melta julta aik mashhoor tol banate hey jes ko new trader say lay kar expert trader tak estamal keya ja sakta hey Bollinger Band indicator ka estamal intraday nechay EUR/GBP ka 5 minut ka chart deya geya hey aik intraday Bollinger Band scalping trading ko dekhata hey es system kay standard kay ley 20 period or standard deviation kay ley 2 period ke tarteeb ka divergence paya jata hey stable period kay doran khd ko repeat kartay hein jo keh day trading strategy ko strong kartay hein es system mein lower or upper Bollinger Band jo keh tarteeb say support r resistance level kay tor par kam kartay hein support band kay buying kay chance ko identify karte hey jabkeh resistance band kay selling kay signal pehchanta hey jaisa keh chart par neshan zad keya jata hey en area ke trade e direction par depend karta hey or end kay level kay tor par bhe estamal keya jasakta hey yeh simple strategy aik or mofeed tareeka estamal karte hey Bollinger Band ko mokhtalef hallat mein kes tarah estamal keya ja sakta hey

A Bollinger Band is a technical analysis tool defined by a set of trendlines. They are plotted as two standard deviation both positively and negatively, away from a simple moving average (SMA) of a security's price and can be adjusted to user preferences. Bollinger Bands was developed by technical trader John Bollinger and designed to give investors a higher probability of identifying when an asset is oversold or overbought. How to Calculate Bollinger Bands®

The first step in calculating bollinger band is to compute the simple moving average (SMA) of the security, typically using a 20-day SMA. A 20-day SMA averages the closing price for the first 20 days as the first data point. he next data point drops the earliest price, adds the price on day 21 and takes the average, and so on. Next, the standard deviation of the security price will be obtained. Standard deviation is a mathematical measurement of average variance and features prominently in statistics, economics, accounting, and finance. For a given data set, the standard deviation measures how far numbers are from an average value. Standard deviation can be calculated by taking the square root of the variance, which itself is the average of the squared differences of the mean. Next, multiply that standard deviation value by two and both add and subtract that amount from each point along the SMA. Those produce the upper and lower bands. Here is this Bollinger Band formula: BOLU=MA(TP,�)+�∗�[TP,�]BOLD=MA(TP,�)−�∗�[TP,�]where:BOLU=Upper Bollinger BandBOLD=Lower Bollinger BandMA=Moving averageTP (typical price)=(High+Low+Close)÷3�=Number of days in smoothing period (typically 20)�=Number of standard deviations (typically 2)�[TP,�]=Standard Deviation over last � periods of TP

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BOLU=MA(TP,n)+m∗σ[TP,n]BOLD=MA(TP,n)−m∗σ[TP,n]where:BOLU=Upper Bollinger BandBOLD=Lower Bollinger BandMA=Moving averageTP (typical price)=(High+Low+Close)÷3n=Number of days in smoothing period (typically 20)m=Number of standard deviations (typically 2)σ[TP,n]=Standard Deviation over last n periods of TP​ What Do Bollinger Bands® Tell You?

Bollinger Bands® is a popular technique. Many traders believe the closer the prices move to the upper band, the more over bought the market, and the closer the prices move to the lower band, the more oversold the market. John Bollinger has a set of 22 rules to follow when using the bands as a trading system.1 The Squeeze

The "squeeze " is the central concept of Bollinger Bands®. When the bands come close together, constricting the moving average, it is called a squeeze. A squeeze signals a period of low volatility and is considered by traders to be a potential sign of future increased volatility and possible trading opportunities. Conversely, the wider apart the bands move, the more likely the chance of a decrease in volatility and the greater the possibility of exiting a trade. These conditions are not trading signals. The bands do not indicate when the change may take place or in which direction the price could move. Breakouts

Approximately 90% of price action occurs between the two bands Any breakout above or below the bands is significant. The breakout is not a trading signal and many investors mistake that when the price hits or exceeds one of the bands as a signal to buy or sell. Breakouts provide no clue as to the direction and extent of future price movement.