As noted in the title of this post, I’ll be using the next few paragraphs to discuss the Bollinger Bands trading strategy. Using the Bollinger Bands indicator I’ll uncover the potential power behind this simple but often overlooked trading tool.
Bollinger Bands were developed by John Bollinger to determine overbought and oversold conditions within a market. Additionally, for a complete breakdown of bollinger bands check out this post from investopedia.com. However, with some additional information you’ll soon see they’re capable of much more than that!