for Excel

are a technical indicator that are placed on charts to show when the price is at an extreme relative to recent price action.  They can be used for taking profits or helping to identify changes in the market direction.   expand and contract depending on price action.

The width of the bands is a useful guide to volatility. The first stage in calculating is to take a moving average.  Then you calculate the standard deviation of the closing price over the same number of periods.  The standard deviation is then multiplied by a factor (typically 2).  The upper band is calculated by adding the standard deviation multiplied by the factor to the moving average.

The lower band is calculated by subtracting the standard deviation multiplied by the factor from the moving average. I don’t normally have on my charts because I find they clutter the charts and distract from the price action.  However, I often add them to charts temporarily to see whether the current price is inside or outside the bands.  I also like using them when I am developing automatic trading strategies because they are self-scaling.  This means that they can be applied to any market and timeframe without needing to adjust the parameters.

Get Bollinger Bands For Excel or the other courses from the same one of these categories: , , , , for free on Course Sharing.

Share Course Bollinger Bands For Excel, Free Download Bollinger Bands For Excel, Bollinger Bands For Excel Torrent, Bollinger Bands For Excel Download Free, Bollinger Bands For Excel Discount, Bollinger Bands For Excel Review, James T. Holter – Bollinger Bands For Excel, Bollinger Bands For Excel, James T. Holter.

Related Shares