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Thursday, December 10, 2009
Bollinger Band
In Forex trading, one thing that We should take a note is relative definition of low and high. You should use that as when You know It’s a high time then You would consider to Sell and It’s bearish time, while if You’re on low relative position then It’s a bullish time signal and You start to Buy.
How To “Read” Bollinger Band?
1. The Price is usually move in the range of the band, the upper band and the lower band.
2. When the price is reaching the upper band, the price will tend to bounce back and time to sell.
3. When the price is reaching the lower band, the price will tend to bouce back and time to buy.
4. If the band become narrower, this is a signal that the price will goes crazy. You have to hold down the trade and see what happen. Otherwise You should see the fundamental analysis and see what happen at this moment. You can always check what’s the event and how They influence the market here
You can start to practise bollinger band using a free demo account as a simple indicator by simply choosing one of the broker besides. Or If You want a real account maybe You can try this provider, Their support is great.
Labels:Business,Forex business
