I am a bit confuse here. What does the Bollinger band settings means? I understand how to use SMA, especially when combined with MACD, but then just curios here. How to use this stuff?
Continue with the school, its all in there
Bollinger Bands is one more indicator and nothing else. If you want to understand how it works and what is the indication you can visit this link and find everything you need: Bollinger Bands [ChartSchool]
How to use bollinger bands mmm. I know, delete them off your chart.
The first number is the periodicity of the simple moving average which forms the middle line of the Bollinger display. (In various different chart packages, its default setting can be 12, 14 or 20, but it can be reset).
The second number is a user-designated number of standard deviations from the mean, and the upper and lower bands are lines connecting them, just as a moving average connects a series of averages.
The underlying principle behind their intended use relates to statistical analysis. For example, in a normally distributed population of samples, about 95% of figures will be within plus or minus two standard deviations of the norm.
For example, if you use the settings “20, 2” that means the midline is a 20-period SMA, the upper and lower bands are each 2 standard deviations away from the SMA, and about 95% of prices will be contained within the bands.
You keep starting threads asking about various different kinds of indicators and how to use them. I’m wondering whether it will ever strike you that indicators may [I][U]not[/U][/I] be your way forward toward profitability, Azlan, and that learning to understand price action might, in the long run, turn out to be far more helpful to you, as it has been to many of us. [B]Indicators don’t predict prices[/B], but their parameters are calculated and their displays formed by (recent) [I]historical[/I] prices. Bollinger Bands, in particular, are an indicator which is going to be very difficult for you to use productively and profitably without some understanding of both statistics and price action anyway.
Delete? I was just starting to re-learn about it. From what I know, on can track the volatility of a pair. Track when it contract, execute when it expand. Does it work? I don’t know, as I mention, I’m re-learning this to see if it work with my present level of knowledge, which is pretty low… 
You don’t need Bollinger Bands, to do that. You can do it with your eye and brain, and [I]those are far better indicators to learn to use, because they’re part of a neural net that teaches itself as it goes along[/I].
(If you [I]must[/I] use an indicator to measure volatility, I’d try ATR rather than BB.)
I’m always curious about exactly what people mean, when they say “work”. It “works” perfectly in that it displays accurately what it purports to display. How you choose to try to use that information is up to you, of course, as it is for all of us, but don’t imagine that it [I]predicts[/I] anything.
In my opinion, this is very likely to be a poor use of your time, effort and energy. Reading a textbook about price action would be overwhelmingly more likely to be helpful to you, in the long run. I know it’s “non-glamorous” advice (the forum software’s Bowdlerising filter removed what I originally said, there!), and that it isn’t what people want to hear, but it’s true. So I agree with Bob and would advise you to delete the BB’s from your charts.
Points taken. Thank You, I will just remove that BB. Regarding ATR, I haven’t reached that level in babypips school yet. Thank you once again, I will look into it.
The problem is that a lot of traders seem to think indicators offer predictions or rules when all the do is [B]indicate[/B] what has happened over a set period of time in the past. Price doesn’t know its at the bottom of a Bollinger Band, so long as traders sell, price will continue downwards.
Other than a simple moving average to help the untrained eye see trends, you can easily trade without indicators.
The scary thing about this game bro is you must first do all this study and learn about these tools then dump all that knowledge out the door and go do you own thing.
Lexy has once again summed it up perfectly in stating the two most powerful indicators are your eyes and brain. Use them and you won’t go wrong.
Bolinger band is inlcluded as good tool to analyze the market, by default BB with setup 20 with standart deviation value is 2, there are three line band, upper band lower band and medium band, on general if price on lower band it already on oversold and likewise
Did you actually [U]read[/U] the thread at all, before replying, Bearish - or just the OP? :34: