technical analysis tool invented by John Bollinger in the 1980s. Having evolved from the concept of trading bands, Bollinger Bands can be used to measure the highness or lowness of the price relative to previous trades.
Bollinger Bands consist of:
* a middle band being a N-period simple moving average
* an upper band at K times a N-period standard deviation above the middle band
* a lower band at K times a N-period standard deviation below the middle band
Typical values for N and K are 20 and 2, respectively.
When the bands lie close together a period of low volatility in stock price is indicated. When they are far apart a period of high volatility in price is indicated. When the bands have only a slight slope and lie approximately parallel for an extended time the price of a stock will be found to oscillate up and down between the bands as though in a channel.
Customer Reviews:
Avg. Customer Rating: 4.0 / 5.0
Got To Be In Your Top 5 Trading Books:
I bought Bollinger on Bollinger Bands yesterday and only wish I had bought a year ago when I began short term trading. The book is NOT just about Bollinger Bands, although there is nothing wrong with that. It contains several strategies and Technical Analysis techniques. I have played around with so many Tech Anal's and just get more and more confused. Because of this book, I am going back to basics, using Bollinger and Volume and go from there. I highly recommend this book...terrific for beginning traders... more info
Too much superflous waffle:
This book wasn't all that bad, and there was some worthwhile trading information in it, however it could've have been half the size had the author not wanted you to know how "really really" smart he was. As a result of this it included a lot of waffle about unrelated history about non trading/investing matters. Still O'Neill did it as well, so did Sperandao.......why do guys who've made a few bucks in the market and turn themselves into authors confuse themselves with Einstein?
Only current book of its kind:
It is quite mind boggling that many traders don't have some kind of bands, channels, and envelopes incorporated into their trading plan. I'm a
strong proponent of using 'absolute limit indicators' in trading, though I do not personally use Bollinger bands because I use different bands in my trading. Neverthless, this book contains many patterns which can certainly be transfer to other 'absolute limit' type of indicators.
This serious book should be studied by all technical traders
Bollinger is the expert on Bollinger Bands and this book show why!:
As a beginning trader, the concept of Trendlines, Stochastics, MACD, RSI, Moving Averages (Weighted, Exponential, Simple) can begin to all blend together. And of course, if you are paper trading, or even actually trading, then your Charting software has the capability to show the Bollinger Bands to help you make your trading decisions. John Bollinger does perhaps the BEST job of all the books I have read on nailing for the reader the statistical value of each type of 'methodology' along with which types of... more info
Privacy policy: we don't collect information
about visitors except for the standard technical server logs. We don't send unsolicited emails. We don't
sell the information that we don't collect about you to anyone. When you follow
links to other sites, their privacy policies apply. Thanks for visiting!
