I’ve read the bollinger bands lesson in the School of Pipsology. Their images show bollinger bands consisting of 2 lines. It’s different from the platform I use which has 3 lines.
How come the middle band is missing in the School lesson?
Hi @baemax023, the middle line (simple moving average) were removed from the images to keep the focus on the bands themselves. But you’re right, most charting software display all three. 
3 Likes
@baemax023
as @ForexGump told you it’s a Moving Average
Bollinger bands will contain a STANDARD DEVIATION above and below the MIDDLE MOVING AVERAGE
Now. you need to understand what is happening here.
a STANDARD DEVIATION cannot exist with a POINT OF REFERENCE to DEVIATE FROM.
The Moving Average is the Reference Point
and depending on how you set it up will define how it works
let’s say it’s a 30 SMA based on the OPEN
this means Each Sample Point is made up of the OPEN prices of the LAST 30 CANDLES
and the average of those 30 open prices creates the PRICE for that SAMPLE POINT
this is how the line moves (hence it’s a lagging idicator)
Now. from that price STANDARD DEVIATIONS Are created (i’m not going to go into the math of SD’s) Look it up, it’s basic high school maths.
but point being,
when you open 1 bollinger band it sets a Standard Deviation
if you want more you open it up again
Me, for example
i use then with 2 Standard Deviations and 3 Standard Deviations
and i have the middle line
so… that’s how that works
does this make sense
3 Likes
Thank you for the clarification, sir!
Thank you for your detailed and clear explanation. It’s very helpful and understandable. 
Wow… thanks for your detailed response))
@Navs24
that’s not really a detailed response on this subject, but… Your’e Welcome in any case
1 Like
I think, middle line is also important; usually I set my TP’s according to the positions of the middle line!
@LauChoKun[quote=“LauChoKun, post:9, topic:135685”]
I think, middle line is also important;
[/quote]
without the middle line the other lines wouldn’t exist hehe 
hell yes it’s important
If you’re interested in seeing an example of a Bollinger Band system, check out the system that Robopip is developing:
Yes, I know that! Actually, BB is one of my most favorite trading tools.
Why do you call them DOUBLE Bollinger Bands ?
What are the settings, How many Standard Deviations is each band representing
it would be more useful to say to something like
I like Bollinger Bands with 2 SD and 3SD Which is what i use
let me show you…
now here is what i use normally
but ok, you are using MT-4 for Mobile (obviously)
Now let me strip down my chart to a raw format with bollinger bands only
so we have this…
Now what i have here is
- The Lavender / Purple Bands are set to 2 Standard Deviations (obviously Lavender colour)
- The Black Band is Set to 3 Standard Deviations (obviously black for the colour)
i chose this colour combination because it appeals to me visually, and i specifically did not choose 2 black lines because when you have to look at something quickly IT MIGHT CONFUSE YOU,
having different colours makes for quicker analysis
both bands have these settings
with the obvious exception that the other one is set to DEVIATIONS = 2
can you see how this is a much more useful explanation of what i’m using for bollinger bands?
it is refered to Kathy Lien’s book.
Double BB.I can see the trend easily.
Your setting is great,I am studying.Maybe can you show some examples that works?
how what works ??
it’s a Bollinger Band
the first band is based on the Close price of the last 20 Candles, hence the AVERAGE close price of the last 20 Candles.
and it is plotted at 2 Standard Deviations
the second it plotted at 3 Standard deviations by the same rules
if the candles / Price goes beyond the first Bands, it means it has reach and exceeded 2 Standard Deviations from the Moving Average based on the close
if it keeps going up and reaches the second band, it means it has deviation from the average by 3 Standard Deviations.
this is self explanatory, hence why i posted the screenshots
What more is there to understand ?
What would you like to know ? I don’t understand your question completely
Your timeframe is huge,week!
I often see hour and 4hour.
BB is more useful in week frames?
… hehe… Prove it.
What do you mean it’s MORE USEFUL on H1 and H4.
you can’t just say that like that. that’s not true
Here, i’ll show you
let me switch to another computer… 1 second…
I’m back
Re this…
let me ask you this… If it’s not useful, then why am i trading successfully like this and have been doing so for a few years ?
You need to understand, everyone has their style of trading and everyone has their setup THAT WORKS FOR THEM
you can’t just come out and say out it’s not useful
Mate, it’s like eating Pizza ok
you eat it from the front, i may like to eat the back first
or When i eat a burger and the beef pattie hangs out the side because it’s big,
i like to first bite all the way around to make the pattie, the size of the bun.
some other people might just bite into the burger and work their way to the back
EACH TO HIS OWN
My way is not More or less Useful, and neither is yours.
but YOUR STATEMENT IS FALSE… that’s for sure.
as for this…
IN YOUR OPINION…
in mine, a Year is Huge
let me give an example of how you are wrong…
here is a 1 Minute chart
Now BASED ONLY ON THIS and nothing else, a Beginner might conclude that YOU SHOULD SELL because price is approaching the 2nd SD
so… SELL Huh
Ok
let’s now jump over TO YOUR FAVOURITE… 1 Hour chart
hmmm
paints a different picture now doesn’t it ?
Price is in the middle,
Now , a beginner may say it’s good to sell here
Actually, in times like this, You stay out, but it’s still under the Moving Average, but not such a huge sell right
ok, let’s keep moving
how about Weekly
Ohh… Look at that
i guess if you were selling, You’be buggered right now … right
so… High Time frames are useless ARE THEY 
and let’s see the monthly
would you look at that huh
now… to a newbie, this would look like it’s going up
ACTUALLY IT’S RANGING
but ok, on the short term, it’s actually going up
so if you look at this portion of it
CLEARLY you don’t want to sell on this hehe
so… so much for that H1 time frame
and so much for high Timeframes being useless
BUT THIS IS ONLY HALF THE STORY
you see, IF YOU’RE A SCALPER
you use this…
and you can wait for a reversal and buy low
or you could something like this…
and you could say that if price crosses to the top of the trend line, then you would scalp UP (as is conveniently happening now)
you can see a range forming
so now you may do this…
and from this you can conclude
IF PRICE DROPS BELOW THAT 2ND TREND LINE… it will possibly go down
BUT… IF IT DOESN’T
then it is certainly going up
you can base entry point and Stop losses on this
that’s scalping and BB’s
Now lets move to a high time frame
by the same reckoning
we can say on the Weekly that as long as price
- Stays above the Red trend line
- Stays above the Mid Point (Moving Average)
WE CAN CONCLUDE, IT MUST KEEP GOING UP
that’s logical… Right ?
and on the higher timeframe, you will get more warning to react than you would on the lower time frame
so HOW IS THIS USELESS
and how is is LESS EFFECTIVE than Lower Timeframes ?
it depends on what type of trader you are
if you are a scalper… to some degree, the high timeframes are meaningless TO A CERTAIN DEGREE (But not completely)
if you trade long term… The 1 minute is irrelevant to you , for the most part
it depends on trading style
but you cannot just come out and dismiss it like that, just because it does not conform to WHAT YOU USUALLY SEE
see how this works.