Congratulations on making it to the 5th grade! Each time you make it to the next grade you continue to add more and more tools bollinger bands settings forex cargo your trader’s toolbox. Let’s compare trading to building a house. You wouldn’t use a hammer on a screw, right?
Nor would you use a buzz saw to drive in nails. There’s a proper tool for each situation. Just like in trading, some trading tools and indicators are best used in particular environments or situations. So, the more tools you have, the better you can adapt to the ever-changing market environment. Or if you want to focus on a few specific trading environments or tools, that’s cool too. It’s good to have a specialist when installing your electricity or plumbing in a house, just like it’s cool to be a Bollinger Band or Moving Average specialist. There are a million different ways to grab some pips!
For this lesson, as you learn about these indicators, think of each as a new tool that you can add to that toolbox of yours. You might not necessarily use all of these tools, but it’s always nice to have plenty of options, right? You might even find one that you understand and comfortable enough to master on its own. Bollinger Bands Bollinger Bands, a chart indicator developed by John Bollinger, are used to measure a market’s volatility. When the market is quiet, the bands contract and when the market is LOUD, the bands expand. Notice on the chart below that when price is quiet, the bands are close together. When price moves up, the bands spread apart.