Valutrades Basic Trading Course – Lesson 15: Bollinger Bands on MT4

Published on October 14, 2022

Latest overview highly rated 10 Minute Forex Wealth Builder Review, Day Trading Profit Secrets, Forex Success, and Bollinger Bands Squeeze Indicator, Valutrades Basic Trading Course – Lesson 15: Bollinger Bands on MT4.

Welcome to the Valutrades Basic Trading Course!

Free FX Trading Signals from Valutrades: www.valutrades.com/en/trading-signals

This is a series of videos, designed to launch the journey of beginning traders, in every aspect of trading with Valutrades.

In this video, let’s take a look at Bollinger Bands.

Bollinger Bands can be used on any time frame and are very good for traders at every level to spot reversals in ranging markets. 

They were originally designed to map volatility in the equity markets and are used by many traders in a variety of strategies.

Bollinger Bands are best used by beginning traders in Ranging Markets. 

We can easily spot both Ranging Markets and Trending Markets as we discovered in previous videos.

Let’s put on a set of Bollinger Bands and see how this looks. 

On MT4 you can find Bollinger Bands under Indicators and Trend.

Do not change any of the parameters except the colour and line thickness.

The heart of the indicator is a 20 period Simple Moving Average.  

The upper and lower bands are calculated with a complicated mathematical formula and are based on 2 standard deviations above and below the 20 Period SMA.

So, how do we use it?  

Here we see a recent Ranging Market.

You will note the 20 period moving average, when it flattens, is a great confirmation of a ranging market.

When price has touched the upper or lower limits we might expect a reversal.

Bollinger Bands work on all timeframes from monthly down to one minute.

Another use of Bollinger bands is to measure volatility.

If we look back over these same charts, we can find many examples of the “Bollinger Squeeze”.

The premise is that if the upper and lower bands remain close together, this indicates low market volatility.

It would be expected then, that shortly after, there would be much higher volatility and, therefore, big movements in price action.

Traders can anticipate this and take financial advantage of the volatility.

OK, Bollinger Bands on their own may not give you enough information and, as traders, we like to see confirmation.

For this, we can add an oscillator and we will look at that in the next video.

Here, example, we can see that in a Ranging Market, a reversal off an upper Bollinger Band corresponds with an Overbought signal on the Stochastic Oscillator.  

This gives us a double indication of a short opportunity.  

On the other side, a clean poke through the lower Bollinger Band and an Oversold signal gives us a good long opportunity.

That’s all for now.

Happy trading with Valutrades and we will see you soon.

CFDs and FX are leveraged products and your capital may be at risk.

Bollinger Bands Squeeze Indicator

Bollinger Bands Squeeze Indicator, Valutrades Basic Trading Course – Lesson 15: Bollinger Bands on MT4.

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The popular Bollinger Bands research study uses a 20 duration moving average. Additionally, copper tends to move closely with gold, which reached over 600 last week, although gold is less overbought.

Valutrades Basic Trading Course – Lesson 15: Bollinger Bands on MT4, Get trending complete videos relevant with Bollinger Bands Squeeze Indicator.

Can You Make Cash Trading Forex Without Any Previous Experience?

This is a question everyone asks each time they take a look at a trading chart. The next step is to contact a direct-access broker and create an account with them. I might only want I was such a horrible guitarist.

You initially master how to trade with one lot when you start trading. Once, you have mastered trading with a single lot, you ought to consider trading with multi lots. Trading multi lots is a milestone in the trading evolution of trader. Nevertheless, you must understand this fact that putting multi lots is a double edged sword and includes an increased level of risk. The threat can be quick and quick and the drawdown proportionately larger than a single lot. The obstacle is to decide when to trade multi lots!

You may need to know where you can get more guides about Forex trading. In fact, you can attempt to visiting the website of brokers. On these websites, you will typically have the ability to discover some totally free ebooks. These ebooks will provide you with all the basics and techniques you will know. For example, you will require to discover some indications such as the RSI and Bollinger Bands. If you can understand the meaning of these indicators, you will be able to make cash.

There are a number of charting software bundles readily available online, some charge and some totally free. I like to use the complimentary ones and the one I use is noted in my blog. When you have the software application that has DMI/ ADX signs, set them as follows: ADX set at 5 smooth. DMI+ and DMI- to be set at 5 periods. I likewise include onto the chart Bollinger bands set at 20 periods simple and also include a 20 and 50 day moving average. The software application should allow you to adjust these settings.

I will money my short-term trading account with a minimum of $60,000 and will Bollinger Bands Trader use a maximum 3-1 margin. My financial dedication to my trading account will be $20,000, I will dedicate up to $4,000 to go to training workshops each year, $350 each year on trading books and $300 monthly for my data and charting software application.

4) Apply EMA 10 & EMA 21 to verify the pattern. Then the is validated a strongish uptrend, if candle lights are above both 10 & 21 EMA. If candles are listed below the 10 & 21 EMA then it is more than likely a downward trend. When the 10 EMA is just Bollinger Bands beginning to cross the 21 EMA, a great early trend entry is basically.

BB’s are readily available on many charting software application. Yahoo has them on their technical analysis charts, as do most other website that are devoted to technical analysis. If you are not familiar with them I advise you to right now, go explore them, using a couple of stocks and market indicators like the Dow, or Nasdaq.

Offered the significantly overbought level of copper, either an unpredictable debt consolidation or a large correction will take place soon. Usually, PD and FCX are more unpredictable than copper. However, PD, FCX, and copper may move by approximately the same percentages. Consequently, the chart suggests, if copper falls from 280 to 260, PD may fall from 85 to 80. Furthermore, copper tends to move closely with gold, which reached over 600 last week, although gold is less overbought. Nevertheless, gold stocks are also partly discounting a pullback in the rate of gold. Within the next few months, gold might fall to 550 or 500.

Moreover, copper tends to move carefully with gold, which reached over 600 last week, although gold is less overbought. Also, over the previous three years, PD and FCX have actually risen by greater portions than copper.

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