Hey guys!
I was just curious if those who trade with Bollinger Bands if you use the middle line as dynamic support and resistance. Since it is a SMA it would make sense to use this as support and resistance but does it fit into this concept?
Also, if you have tips and tricks to go along with this please share!
-CloudCharter
Try these videos by The Scruffy Trader.
Bollinger Bands are a type of statistical chart characterizing the prices and volatility over time of a financial instrument or commodity, using a formulaic method propounded by John Bollinger. Bollinger bands help determine whether prices are high or low on a relative basis. They are used in pairs, both upper and lower bands, and conjunction with a moving average.
Bollinger bands can be a very helpful tool to plan entry and exit points for a trade. But this definitely does not mean that one uses only this to trade. Other indicators and charts ought to be used in collaboration to get more accurate and precise results in trading.