Tip:
Highlight text to annotate it
X
Hello traders welcome to be
31 the first letter on the Advanced Course
and we will be the Bollinger Bands I'm gonna do with the others forbade
trading finest dot com rethink a moment to both
marie's disclosure remember that trading binary options
shall indeed ever but can be highly profitable
or did Katie and the CP Bester on these
we're going to learn what during bans are there
how are they created the cycles volatility
and trading opportunities the overbought and over spikes
and how to trade with the Bollinger Bands so watered Bollinger Bands
Bollinger Bands were created by John Bollinger
19 eighties the idea is to that traders no extremes
prices on a short term Bollinger Bands use a moving average
the me know one and two standard deviations on both sides
to plot the band's this indicator
uses standard deviation boys got they should because
some common measure of volatility with the price of the security because but
I'll
the band's expand and when the quality
dries up they contract you always find price trading inside the bands with you
these indicator and this is how it looks
on your chart these the US dollar Canadian dollar what I would chart
and a Bollinger Bands indicator
with the settings on that twenty pew moving average
which is them be no bad and
at those standard deviations above
and beyond them needle bada which
lot the offer and know what bad are the indicator
in periods of nobility
you will see that bad contract like these
and when the quality starts to come up
you will see the band expand like this
the cycle civility
yet trading opportunities as you know anything life has its own sake
sold of quality if you look closely
chart using the body your bad Decatur you will notice
two things the first 1 is that there are a few years with extremely low quality
and after these nobility periods
on the highway 30 periods so
when you spot these two cycles you can't do
two things one appointed chop the contracted
when the bats are contracted very close to each other
it means that we're at the very low remember
as traders we use well that TTT to profit from
if you get caught in the trap you will start
nosing money necessarily at the second one
is wait for the expansion to begin to buy puts or calls
and profit from by Relativity now these
exactly how it looks on your chart again these
the US dollar Canadian dollar for our chart I with dust same
settings on the Bollinger Bands we have that 20 these
21 Union moving average at to standard deviation
on the OCR and the on the log where our bodies are banned
of course you can't use whatever settings you want
you can choose to use 50 period moving average
and I one standard deviation or you can choose to
to use nowhere period moving average with us
standard deviation and of course these will make
your Bollinger Bands barry
the default setting is at twenty period
standard deviation now as you can see
on these contraction we how
trainable job if you get if you start to
trade by which are Coles these
area it is more likely that you're going to end up
out at the money that in the money because there is no
definite date direction but
Wayne monetti starts to keep up
we have a body bands expansion and a
we have an opportunity to the off-site and then to the downside
as you can see Bollinger Bands you must
very be role cycle
volatility appreciation and a I very easy to
trader want ittt
kiko then
we are going to look at the overbought and over Seoul's
bike now that we know
how to monitor tags: high-quality with body japan's
we must understand how to use them
at the beginning we stand that these bands are also used to monitor
extreme prize for the short term and this is exactly where we going to
look at now when prices bikes above the opera van
the market is overbought at I right
is sustainable we are due for a short term
already immediate correction and
variously when price thanks below the lower band
the market is over so these extreme low prices
these extreme low price is now on sustainable
the extremes can mark an immediate shift
in price direction so when you see a price
bike above the upper bad who media
that I reversal might be play because them
mu that we just saw is coming to an end
and their when price spikes be know the lower band
economy that the down movies coming to an end
and boo RT
the position on the the
are the crazy or
go or the security that you are trading
did so let's look at at some price spikes
over the band's here's the same US dollar Canadian dollar
for which art and we are going to look one by one
at these bikes okay now
we have the same settings on the or the phone settings on the Bollinger Bands
that reputed moving average added standard deviation
ought to back to date the opener and lower band
so here we go used efforts by that we care
look at I after the price
spike Obama the
upper band we can see that he which all the way back down
then we have us sake spy here
which meant that rights was on the
media re very but they continue to drop
so I as you can see sometimes these bikes
do not mean that price is forty reversing but the
they do mean that rise is about
to have any immediate reversal or
any immediate correction okay
there price with you to the downside we have a spike
here and we have a more know where thats
bike all the way about above the low-balling your bad
and then we have another spike above the high
about the the upper Bollinger Band that gave us
signal to buy boards because he'd had a
also I think goal a bearish engulfing candle
you need at a West right I smoked all the way down to the lower band
so as we have immediate reversals
after these by take a look at these last
bike rice was moving all the way up and when we got the fake out
the this bike about the OCR
Bollinger Band we had I think both candle and a single by
boots which will have end up in the money since this is the 4-hour chart
we would have been trading maybe the
end of day or
longer-term expiry but let's say that these
actually a 50 minute chart we see the
spike up ball the upper Bollinger Band
we see the bearish engulfing candle and we
we buy puts for an hour in the expiration and we come 1,2,3,4,5 candle
bomb we would have and that up in the money on this one maybe a two-hour
exploration to be
sure because the probe because price was really movin
so this is how price spikes
can gave you scarves or day trades
on depending on what's thank train
are you analyze your charts on trading from
but they can't give you signals to buyer to buy puts or Kohl's
now I well we were talking about these how to trade with the Bollinger Bands
when prices trading below the middle band we are in a downtrend
let's go back to these to these chart as you can see here
when we broke below the mean old band we started to trade
I i mean said below the mean a bad and placed order to give
strongly and that we started this downtrend
we corrected he wasn't wise but then we continued to the downside as you can see
price was trading inside middle band and
the lower band in these in this downtrend the
down movement then went price broke to the to the upside inspired
trade above a them evil bada
we started to move up
so when price is trading below the middle band we are in a downtrend
and when we are in a downtrend remember that will look to buy boards
on a correction and when prices trading above the metal band
we are in an uptrend and we look to buy
holes on pullbacks we look for reversals to counter trend trade
once bikes above the upper bad or below the upper bad
as we just saw but we need a conservation
that this by is actually a good signal so we use candlestick formation
for a and we need a confirmation that preys
is breaking to the other side of the meal
bed to have a full confirmation over reversal
be careful with big signals with the confirmation such a single three batters
so the squeeze the third
way to trade the body bans what the best contract
we wait for the expansion to buy the binary options that we won
because reports of course now
after squeeze me we must wait for definite direction from the Middle bad
I get when we have periods of low quality tea expect the hyde
a period of high quality yesterday and I mean when price contract a with the
Bollinger Bands are contracting
and then they expand this is called a squeeze but when they expand
you'd need to make sure that your trade
Woodside if price breaks above the beetle
them you know bad you need to buy coals and if you breaks below the middle bad
you need to buy woods all the security that you are trading
here is an example all the opportunities we are talking about
again the same chart the US dollar Canadian dollar for which are but let's
imagine
the charts the same the it's a price action chart
with the same Bollinger Bands to any period moving average
with two standard deviation on both sides
now years here's the first by and
was not because as you can see the
we have I that very scandals
bike Obama the bullish candle
and the we do not have a candlestick formation
and this second and third even fourth
candle after this by are very weak
and failed to cross be no the
year the meal band in price started
up again and of course we didn't take the trade because
E are foo signal then we had mothers
by and then I way we had a second spy
we had a bearish engulfing pattern and then right
broke be know them you know bad there we could have
but points for it your tree the 50-meter
chart for now where or 2i where expiration option
and we would have that up the money there
hearings a squeeze play be know them you know bad you can see after these
long period all
well located or well yeah I'm not appear fiber that unity because that bad
expanded lot we had a contraction called a squeeze
waved a we had this wheeze we worry that job this is
tradable but weren't that bad started
to expand
we had a break a strong brake been no them
bad and a single to buy boots which would have
and that'll be the money again then we have a move that all the way down
we are trading up by be no the meal
bad which means that we are in a downtrend so we are looking to buy
boots and a correction this is not enough a correction for us to buy
boards this is not enough a correction
but these is with even though we broke
be low at Big Bear we broke up ball them you know bad
we are still down movement because we have
we haven't had a i saying of rebirth yet
when we spiked for me
II the inverted hammers here
we have a clear signal to buy boards on a correction
and of course we would have ended up in the money because right started
the move back down then we have a trend reversal by
year price tested
these every of support then EMU
very strongly to the upside spiky
here but way sale
to breakbeat no the middle bad just like you these
gays we do not have a correction but a trend reversal in this you can see price
but you
to move up and we would have bought Coles
here and that up in the morning so this is basically
what Bollinger Bands are and how you use them
trade and at the end of these advanced course we will have an entire
body injured bad strategy for you guys
thank you for joining us you or the next lesson