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
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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 ?
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!
