Bollinger Bands usage vs moving average for forex trading

(Last Updated On: January 22, 2018)

Does anyone believe in this statement on which may have better forecast? Bollinger Bands or some form of moving average.

Bollinger Bands do not use a subjective percentage value to place upper and lower bands around the moving average line. Rather, the Bollinger Bands react to changes in volatility automatically using standard deviations from the moving average. The standard deviation is an expression of the trading range of the asset; a smaller trading range has narrower Bollinger Bands, while a more volatile asset has wider Bollinger Bands. This also means the same percentage of price movements is captured within Bollinger Bands, or 88.9% at two standard deviations from the moving average.

Read more: What is the difference between Moving Average Envelopes and Bollinger Bands®? | Investopediahttps://www.investopedia.com/ask/answers/122314/what-difference-between-moving-average-envelopes-and-bollinger-bands.asp#ixzz54xAnWEMk
Follow us: Investopedia on Facebook

Does this mean one should not take on a trade if the current Boll rate is closer to the middle. This means that the currency is pair is in a flat range which hs is not what you want. You would want the momentum/volatility to be in your favor pushing towards a higher spread. Let me know what you think. Would you also think 2 standard deviation could be use as the universal pivot?

 

Also, what do you think is ‘faster’ or less lagging to the real price?

Bollinger, EMA, or SMA ?

True range forex trading market random performance video

Minimize loss with linear regression for algo forex trading

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!
This entry was posted in Forex and tagged , , , , on by .

About caustic

Hi i there My name is Bryan Downing. I am part of a company called QuantLabs.Net This is specifically a company with a high profile blog about technology, trading, financial, investment, quant, etc. It posts things on how to do job interviews with large companies like Morgan Stanley, Bloomberg, Citibank, and IBM. It also posts different unique tips and tricks on Java, C++, or C programming. It posts about different techniques in learning about Matlab and building models or strategies. There is a lot here if you are into venturing into the financial world like quant or technical analysis. It also discusses the future generation of trading and programming Specialties: C++, Java, C#, Matlab, quant, models, strategies, technical analysis, linux, windows P.S. I have been known to be the worst typist. Do not be offended by it as I like to bang stuff out and put priorty of what I do over typing. Maybe one day I can get a full time copy editor to help out. Do note I prefer videos as they are much easier to produce so check out my many video at youtube.com/quantlabs