Techniques for mastering Bollinger bands for maximum profit. 5 Bollinger bands set-ups and their variations that you must know if you want to use Bollinger bands effectively.
Bollinger bands are about the best indicator you will ever use to help identify high probability trades. Bollinger bands measure a standard deviation from the mean or middle. Usually the “mean” or middle is a 21 day moving average of closing price. So you would lay down a 21 day moving average and then a 2.0 standard deviation set of Bollinger bands and when price closed outside of either band it is said to have closed outside a 2 standard deviation band. 2 standard deviations from the mean.