The «Bollinger Bands» Indicator
Often, the Bollinger waves (lines or bands) have been tested by absolutely any newbie, dreaming on, that he would call himself a binary “guru”. Even the professionals often use the waves. Their popularity is “powered” by simplicity and clearness. The main thing is efficiency. Once the mechanism is understood, then they will start to work. The waves, in fact, is a ready-to-go strategy based on tech indicators. They got a solid unbeatable status in the world of binary trades. Hence the success of the waves itself. To begin to understand the bands, bearing the name of Bollinger, look at the picture, you can do the same thing on our Live graph, where it is called the “Bollinger Bands” indicator :
The Waves – lines of three colors: purple, green, yellow. The upper strip “neighbors” with the highest price levels for the selected specified period. It is the resistance line. The bottom line is referred to as a support band. But there is a “pass” channel trend movement in between – a space where all the indicators of the chart are. So, in fact, what is the working mechanism of this tool ? The lines show the most good (perfect) time to enter the market. When the top line crosses, you should buy an asset at a price fall. If the graph line falls below the support boundaries, you should sell the asset on the price rise. But the most successful deal possible to “crank up” when the chart is being bent.That is, it is not just touches the lines, or only crosses them, it also makes a sharp drop / sharp rise. But this fortune has its negative side, because you have to wait for these sudden, critical movements. Since the transactions in the binary options are extremely short-lived, even those critical fluctuations should be perceived as conditional.
To set the indicator, you just have to click on the mouse button. You even choose the color of bands on the chart. The meaning of the strategy – are statistical figures, their provision. We give the average values between the lower and upper limit. These values are given after the analysis of ninety-five percent of transactions. Normally, the monitored period consists of twenty days (a base value). But, as can be seen in the picture, you can specify a maximum of fifty-four days in the settings. Once all the values are set, including the colors, you need to click the “apply” button. Further work is shown in the next picture:
Then move onto the practice and a particular trading tactics «The Bollinger Bands in Binary Options» will show how to trade profitably, using this indicator.