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3 people had a hand in my system development.

I've posted about Richard Donchian in Post #1296 & Nicolas Darvas in Post #1315.

John Bollinger
Now it's John Bollinger’s turn to be talked about. Again apologies for the lengthy post but his idea is worthy of a detailed explanation.

1. Richard Donchian (posted the article 27th January 2019 - Post #1296)
2. Nicolas Darvas (posted the article 28th January 2019 - Post #1315)
3. John Bollinger

Disclaimer
I use Bollinger Band Breakout theory only, the parameters are all mine. Standard parameters have been traded to death & its advantage has been negated. Daily strategy has trouble finding its legs whereas a weekly strategy can find those bigger moves.

Bollinger Bands attempt to overcome the problems associated with trading envelopes
Bollinger Bands combined the measurement of volatility (standard deviation) with a moving average. There are a set of two variable width trading bands that would automatically adapt to the volatility of the market. Whereas trading envelopes surround the market action with two bands which are drawn a fixed percentage above and below a moving average of the market Meaning for intermediate term trends, Bollinger Bands consist of a series of three bands.

(Please Note, do not trade these parameters, they don’t work anymore)

Phew, what does that all mean ?
1. The middle band is a 20 day simple moving average of the market closing price.
2. The upper band is drawn by adding two standard deviations to the middle band.
3. The lower band is drawn by taking two standard deviations away from the middle band.

Trends
1. For short term trends, a 10 day simple moving average and a standard deviation of 1.5 is more appropriate.
2. For long term trends, a 50 day simple moving average and 2.5 standard deviations are usually used.

(PLEASE - do not trade the setting in this post, most of what I’ve written is from memory, if it's incorrect I apologise)

Moving from one band to another
When the market action moves above the top band or below the bottom band, it suggests that the present trend shall continue. If a market moves from one band towards the moving average, it is likely to continue to the other band. Powerful moves often commence after the market’s volatility has become very low and the bands have tightened around the market action.

The Bollinger Bands theory has merit
(a) The bands track market volatility, prices are relatively high when prices are at the upper band and relatively low when they are at the lower band.
(b) Powerful signals that usually follow Bollinger band squeezes make Bollinger Bands an important tool for all traders
(c) Bollinger Bands indicator has been a technical tool that continues to be of immense value to many traders.

Skate.

<blockquote data-quote="Skate" data-source="post: 1012361" data-attributes="member: 57364">3 people had a hand in my system development.I&#039;ve posted about Richard Donchian in Post #1296 &amp; Nicolas Darvas in Post #1315.John BollingerNow it&#039;s John Bollinger’s turn to be talked about. Again apologies for the lengthy post but his idea is worthy of a detailed explanation.1. Richard Donchian (posted the article 27th January 2019 - Post #1296)2. Nicolas Darvas (posted the article 28th January 2019 - Post #1315)3. John BollingerDisclaimerI use Bollinger Band Breakout theory only, the parameters are all mine. Standard parameters have been traded to death &amp; its advantage has been negated. Daily strategy has trouble finding its legs whereas a weekly strategy can find those bigger moves.Bollinger Bands attempt to overcome the problems associated with trading envelopes Bollinger Bands combined the measurement of volatility (standard deviation) with a moving average. There are a set of two variable width trading bands that would automatically adapt to the volatility of the market. Whereas trading envelopes surround the market action with two bands which are drawn a fixed percentage above and below a moving average of the market Meaning for intermediate term trends, Bollinger Bands consist of a series of three bands. (Please Note, do not trade these parameters, they don’t work anymore)Phew, what does that all mean ?1. The middle band is a 20 day simple moving average of the market closing price.2. The upper band is drawn by adding two standard deviations to the middle band.3. The lower band is drawn by taking two standard deviations away from the middle band.Trends1. For short term trends, a 10 day simple moving average and a standard deviation of 1.5 is more appropriate. 2. For long term trends, a 50 day simple moving average and 2.5 standard deviations are usually used.(PLEASE&nbsp; - do not trade the setting in this post, most of what I’ve written is from memory, if it&#039;s incorrect I apologise)Moving from one band to anotherWhen the market action moves above the top band or below the bottom band, it suggests that the present trend shall continue. If a market moves from one band towards the moving average, it is likely to continue to the other band. Powerful moves often commence after the market’s volatility has become very low and the bands have tightened around the market action.The Bollinger Bands theory has merit(a) The bands track market volatility, prices are relatively high when prices are at the upper band and relatively low when they are at the lower band.(b) Powerful signals that usually follow Bollinger band squeezes make Bollinger Bands an important tool for all traders(c) Bollinger Bands indicator has been a technical tool that continues to be of immense value to many traders.Skate.</blockquote>

[QUOTE="Skate, post: 1012361, member: 57364"] 3 people had a hand in my system development. [B]I've posted about Richard Donchian in Post #1296 & Nicolas Darvas in Post #1315.[/B] [B]John Bollinger[/B] Now it's John Bollinger’s turn to be talked about. Again apologies for the lengthy post but his idea is worthy of a detailed explanation. 1. Richard Donchian (posted the article 27th January 2019 - Post #1296) 2. Nicolas Darvas (posted the article 28th January 2019 - Post #1315) [B]3. John Bollinger[/B] [B]Disclaimer[/B] I use Bollinger Band Breakout theory only, the parameters are all mine. Standard parameters have been traded to death & its advantage has been negated. Daily strategy has trouble finding its legs whereas a weekly strategy can find those bigger moves. [B]Bollinger Bands attempt to overcome the problems associated with trading envelopes [/B] Bollinger Bands combined the measurement of volatility (standard deviation) with a moving average. There are a set of two variable width trading bands that would automatically adapt to the volatility of the market. Whereas trading envelopes surround the market action with two bands which are drawn a fixed percentage above and below a moving average of the market Meaning for intermediate term trends, Bollinger Bands consist of a series of three bands. [B](Please Note, do not trade these parameters, they don’t work anymore)[/B] [B]Phew, what does that all mean ?[/B] 1. The middle band is a 20 day simple moving average of the market closing price. 2. The upper band is drawn by adding two standard deviations to the middle band. 3. The lower band is drawn by taking two standard deviations away from the middle band. [B]Trends[/B] 1. For short term trends, a 10 day simple moving average and a standard deviation of 1.5 is more appropriate. 2. For long term trends, a 50 day simple moving average and 2.5 standard deviations are usually used. [B](PLEASE - do not trade the setting in this post, most of what I’ve written is from memory, if it's incorrect I apologise)[/B] [B]Moving from one band to another[/B] When the market action moves above the top band or below the bottom band, it suggests that the present trend shall continue. If a market moves from one band towards the moving average, it is likely to continue to the other band. Powerful moves often commence after the market’s volatility has become very low and the bands have tightened around the market action. [B]The Bollinger Bands theory has merit[/B] (a) The bands track market volatility, prices are relatively high when prices are at the upper band and relatively low when they are at the lower band. (b) Powerful signals that usually follow Bollinger band squeezes make Bollinger Bands an important tool for all traders (c) Bollinger Bands indicator has been a technical tool that continues to be of immense value to many traders. Skate. [/QUOTE]

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