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Technical analysis


FX


Tens of thousands of currency traders use the Bollinger Bands as one of their favourite technical analysis indicators. As a volatility indicator similar to the Keltner channel, Bollinger Bands are well known for being one of the most reliable tools for assessing expected price action and can be used to measure the “highness” or “lowness” of the price relative to previous trades.


Since the creation of the bands 30 years ago, John Bollinger has continued developing several new indicators. He recently created a set of new tools, which are all adaptive to market conditions via their grounding in Bollinger Bands. Tey can help traders for example to better understand how the bandwidth is changing, or if prices are trending or consolidating, or how the price is changing in relation to Bollinger Bands.


To introduce his new suite of indicators and tools and teach traders how to use them, John released a set of DVDs which condense his latest two day-seminar into 8 hours of presentations. Tis DVD course received FX Trader Magazine “Mark of Excellence” as it gives traders all the necessary elements to trade using the Bollinger Bands, including the derived indicators and tools, and teaches some useful technical analysis techniques such as M&W Patterns, Tree Pushes to a High, the Ice Breaker Trading System and more.


FX Trader Magazine readers who wish to purchase the new DVD course: “Bollinger on Bollinger Bands DVD 2013”, will receive a complimentary DVD “Introduction to Bollinger Bands” as well as a free three-month subscription to the Pro section of www.BBForex.com (read more here).


FXTM: Since your last interview in FX Trader Magazine, it seems like you’ve been working hard creating new indicators and tools. Can you tell us more about these new tools?


JB: I developed Bollinger Bands 30 years ago and shortly thereaſter I derived two indicators from Bollinger Bands, %b, which tells us where we are in relation to the bands, and BandWidth, which tells us how wide the bands are. For many years those three components were the Bollinger Band family.


Te next addition was Bollinger Envelopes, which are Bollinger Bands derived from the extremes of the data rather than an average of the closes. More recently I came to understand that a number of new Bollinger Band tools were possible, tools that could usefully


replace of


analogs. Te goal was to create a full suite


logically-consistent,


their non-adaptive fully-


adaptive, state-of-the-art, technical- analysis tools derived from the Bollinger Bands. Teir commonality is that they are all adaptive to market conditions via their grounding in Bollinger Bands.


FXTM: Are they meant to be used as a complement to your volatility bands?


JB: Exactly. I use other indicators


for confirmation or divergence of band action and that is how these indicators are meant to be used. They work with Bollinger Bands, Bollinger Envelopes, or Bollinger Bands constructed with alternative smoothings as their inputs. In fact, they will work with almost any kind of trading band:


FX TRADER MAGAZINE April - June 2014 59


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