Bollinger Bands are a powerful technical indicator created by John Bollinger. The bands encapsulate the price movement of a stock, providing relative boundaries of highs and lows. The crux of the Bollinger Band indicator is based on a moving average that defines the intermediate-term “trend” based on the time frame you are viewing.

But how do we apply this indicator to trading and what are the strategies that will produce winning results?

In this post we’ll provide you with a solid foundation on the bands, plus six trading strategies you can test to see which works best for your trading style.

But before we do, check out this quick tutorial as a primer for the more advanced concepts discussed below.

 

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