What is the best setting for Bollinger Bands?
John Bollinger suggests a setting of 9-12, and for me the best setting is 12. With these settings you will find that in an uptrend, the Upper Bollinger Band points nicely up and prices are constantly touching the Upper Bollinger Band.
How do you set up Bollinger Bands?
This is how you apply it on your chart:
- Insert the Bollinger Bands® on the chart.
- Go to ‘Settings’ and select two standard deviations and a 20 period SMA.
- Insert a second set of the Bollinger Bands® with a different colour.
- Go to ‘Settings’ and select 1 standard deviation and a 20-period SMA.
What is the best setting for stochastic?
For OB/OS signals, the Stochastic setting of 14,3,3 works well. The higher the time frame the better, but usually a H4 or a Daily chart is the optimum for day traders and swing traders.
How accurate is Bollinger Bands?
By default, the Bollinger Bands ® are set to 2.0 Standard deviations which means that, from a statistical perspective, 95% of all the price action happens in between the channels.
What length should Bollinger Bands be?
Because the distance of the bands is based on standard deviation, they adjust to volatility swings in the underlying price. Bollinger Bands use 2 parameters, Period and Standard Deviations, StdDev. The default values are 20 for period, and 2 for standard deviations, although you may customize the combinations.
How can you tell a Bollinger Squeeze?
The Basics of Bollinger Bands When Bollinger Bands® are far apart, volatility is high. When they are close together, it is low. A Squeeze is triggered when volatility reaches a six-month low and is identified when Bollinger Bands® reach a six-month minimum distance apart.
Are Bollinger Bands useful?
Bollinger Bands can be a useful tool for traders in assessing the volatility of their position, providing them with insight on when to enter and exit a position. For forex traders, certain aspects of Bollinger Bands, such as the Squeeze, work well for currency trading, as does adding a second set of Bollinger Bands.
