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source: FxWire Pro

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Using Bollinger Band and Stochastic Along with Price Action

Using, Bollinger Band, Stochastic, Along, Price Action, Technical Analysis, fx trader, forex

Bollinger Band Indicator

Bollinger Bands were established by John Bollinger in the 1980s. Bollinger Bands are comprised of the following bands:

• The upper Bollinger Band

• The moving average Bollinger Band or Middle Bollinger Band

• The lower Bollinger Band

The default settings for the Bollinger Band consist of a 20-period Simple Moving Average for the middle band and the bands are set at 2 standard deviations above and below the middle band. The purpose of Bollinger Bands is to give a relative meaning of highs and lows, measuring price volatility. 

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