TechniTrader Stock Trading "Bollinger Bands® Indicator"

Market Conditions Important for Bollinger Bands®


Bollinger Bands are used as a technical indicator, that help retail traders read stock charts more easily. The Retail Traders Market Participant Group includes those who trade stocks from home. 

The Bollinger Bands indicator is a Channel Indicator. Channel indicators are lines that are drawn by the computer software program, above and below the price on the chart. The difference between Bollinger Bands and other channel indicators, is that Bollinger Bands expand and contract with the dimensions of the candlesticks or bar chart price.

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Often times, a beginner who is just learning how to read charts has a difficult time seeing sideways price action, and when a compression pattern is forming. Compressions are important technical patterns to recognize early, because these tight price patterns end with a sudden velocity or momentum run up or down. 

By using the Bollinger Bands indicator which consists of a line above and below the candlesticks on the price chart, compression patterns are easier to see so that a retail trader can prepare in advance for the breakout move.

TechniTrader is "The Gold Standard in Stock Market Education." Go to the TechniTrader.com and read this article in full.

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TechniTrader is "The Gold Standard in Stock Market Education." Go to the TechniTrader.com Learning Center and watch a wide variety of webinars, to experience for yourself the excellence of TechniTrader education.

Go to the TechniTrader  

http://technitrader.com/learning-center/

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Trade Wisely,

Martha Stokes CMT 

Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses

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