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Common uses of Bollinger Bands

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The Bollinger Bands is a technical analysis tool developed by John Bollinger in the early 1980s.
 
Bollinger bands consist of three curves drawn in relation to the price. These three curves are the upper band, the lower band and the middle band. The middle band is, as a rule, a simple moving average and therefore provides information on the trend. From the midband the upper and lower bands will be calculated using a standard deviation. The interval between the upper and lower bands gives information on the volatility or market activity. By default, the parameters used are a simple moving average of 20 periods and 2 standard deviations to calculate the upper and lower bands.
(Note: on some platforms and graphical analysis software the midband is not shown).

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The Bollinger Bands

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Bollinger Bands – A Great Trading Tool!

Bollinger Bands were developed by John Bollinger. During the early 1980s, Bollinger Bands were announced as a technical trading tool designed to analyze the market (in the beginning it was developed for the stock market). Bollinger was the first person who first developed the method of using MA or moving averages along with two different trading bands. This sort of method was just like using an envelope to cover both sides of a moving average. Contrary to the normal moving average where percentage calculation is important, Bollinger Bands can add as well as subtract the standard deviation which is present in a calculation. Bollinger Bands can be used to produce a definition for the high and low.  For this reason, it is an indicator that can help the trader in rigorous pattern recognition. It is also a helpful tool when the trader is trying to compare the price action with the information displayed by other indicators to arrive at trading decisions.

The Bollinger Bands is an indicator that surrounds the price action in a price chart using two bands and today it is a standard indicator in most trading graphics packages and platforms. It is calculated from a moving average (a simple moving average) on the closing price which is enveloped by two bands that are obtained from adding and subtracting 2 standard deviations from the mean value. This measure of volatility (standard deviation) is what makes the amplitude of the bands.

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The Fibonacci Retracements in Trading

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In technical analysis, Fibonacci Retracements refers to the possibility that the price of a financial asset, such as currency pairs, back off a considerable percentage of the original movement and find levels of support or resistance at the levels established by the Fibonacci numbers before resuming the original trend. These levels are built by drawing a trend line between the endpoints of the movement in question and applying the vertical distance the key percentages of 23%, 38.2%, 50%, 61.8%, 76.8% and 100% based on Fibonacci numbers.

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Broker Z.Com Trade

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Z.Com Trade-Broker Review

Z.Com Trade is a recognized Forex and CFD broker from the UK which has a significant presence in other countries like Japan and China (Honk Kong). Currently, this broker founded in 2012 has more than 400,000 customers from all over the world. This company offers access to a variety of financial markets besides Forex through Contracts For Difference based on multiple underlying assets and is characterized by the quality of its services, its strong track record, and a good reputation that has remained through the years. At present, it is the largest provider of retail Forex brokerage in terms of the trading volume.

Z.Com Trade belongs to the company GMO CLICK Holdings Inc, which is listed on the Tokyo Stock Exchange (JASDAQ) with stock code 7177.

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Double Bottom Pattern – Definition & Description

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If you are a pro Forex trader, you would certainly know a lot of information on the double bottom chart pattern. In this case, Double Bottom is a high potential chart pattern which is significantly taught in Forex training. Moreover this is one of the best and successful patterns that are being followed by many successful Forex traders. This chart pattern looks very similar like the alphabet ‘W’. Expert Forex traders most usually expect the price to be in down trend making a BOTTOM. It will slightly rally up while it is sold down with the previous bottom. We can say that this figure is the opposite of the Double Top pattern.
Forex traders generally look around for a fair increase when the market hit the resistance. For giving you a better idea in this regards, here is an example for reference: Just consider when the market drops down from $10 to the least of $2 during the 1st bottom, here the $2 buyers explore the market and drive-up the price at least for $5, where the sellers disdain the $5 level and trade the market again to $2. At this point, the price of the 2nd bottom remaining with $2, the buyers find it easier to get at $2 and further escalate the market again to $5. During this point after minor conviction, they will be able to push the market to $5 again.
Generally, the double bottom pattern appears while the price falls down and further bounces up and then falls down for the 2nd time in order to equalize the 1st drop. This is why experts compare this chart with the alphabet W. In most of the cases, the 2nd bounce in the price will usually be lesser compared to the first one. The 2nd chance of buying will get its peak which will be lesser than the 1st one. If the 2nd peak reaches, buying gets its end and now selling starts. This entails the 2nd leg of M pattern.

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Double Top Chart Pattern

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The identification of good and valuable chart patterns will help a trader to make great profits within any financial market including Forex. When it comes to chart patterns, you could find plenty of patterns being discussed and even e-Books describing the successful strategy. Well, not all of them work in reality. Here, you can find a lot of information on the double top reversal pattern that helps you to master your trading business and deserve a lucrative cash flow in the Forex market.

Doble Top Description

The Double Top is a chart pattern of high reliability which is formed in bullish markets and precedes a change in trend from bullish to bearish. Generally, double top will begin with a rise in price and it will gradually exhibit a drop. It will further increase in price within the similar level of the original rise, and make a drop further.

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Trades against the double zero levels

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One of the most overlooked aspects in trading although it is one of the most lucrative if properly understood, is the market structure. Having a deep understanding of market dynamics and micro-structure gives the trader a huge advantage and is one of the best tactics to profit with changes in the price of the currencies at intraday level. This is key for traders who prefer short-term trades.

In the Forex trading thist is crucial, because the main influence on the price movement in the intraday market is the order flow. Since in most cases, individual traders do not have access to order flow data, day traders seeking to profit from short term fluctuations have to learn to identify price areas where large orders flows should occur so that they can anticipate these orders flows in the right moment. This trading strategy with double zero levels is extremely efficient for intraday traders because it allows them to keep pace with the market makers.

When we trade at intraday level, we can not look for rebounds in all levels of support and resistance and expect winning trades in all cases. The key to a profitable intraday trade is that the trader should be selective and just open positions at the levels where there is a greater probability that a reaction will occur. For example, opening positions in psychologically important price levels, like round numbers or double zeros, is a good way to identify such opportunities.

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Opteck – Binary Options Broker

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Update on the broker Opteck Like many other binary options brokers, the company Opteck closed its operations in mid-2098 due to the ban on these trading instruments in Europe and other jurisdictions. To this, we must also add the bad reputation that binary options have acquired among retail traders. However, if you are interested in trading binary options and other … Read more

Candlestick Pattern Abandoned Baby Bullish – Definition and Interpretation

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The candlestick pattern Abandoned Baby Bullish is a trend change formation of high reliability which is generated in bearish markets and indicates that there is a high probability that a change occurs from bearish to bullish trend. This formation can be identified as follows:

  • The current trend in the market should be bearish.
  • A large black candle which is followed by a Doji candle whose maximum occurs below the low of the previous black candle.
  • Between these candlesticks there is a gap whichs is known as “falling window”. During the next period a large white candle above the Doji is formed with an upward gap (rising window). This white candle penetrates deeply and closes within the larger black candlestick.
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