John Bollinger Interview With MetaStock

This an excellent interview with John Bollinger who created the Bollinger Bands, which are a nifty little tool used by the technical traders to help make sense of the markets. They are made up of three lines or bands you could call them that move by expanding and contracting around the price bars on the chart. I was fortunate to be able see him live in Toronto at our TA workshop years ago with the Canadian Society of Technical Analysts.

The middle band is a moving average that tells you the average price over a certain time. The other two bands move above and below the middle band at a set number of standard deviations away. These bands help show how much the price is wandering from the average.

Now, these Bollinger Bands are clever little things, and they’re quite useful for finding trading opportunities. When the price meanders up to the upper band, it might mean the market is getting a bit too excited and may soon settle down. And when the price dips down to the lower band, it might mean the market is getting a bit too down in the dumps and may soon bounce back up. This can give technical traders a clue about when to buy or sell, depending on what they think the market will do.

But Bollinger Bands aren’t just for finding trading opportunities. They’re also good at showing how volatile the market is feeling. When the bands are huddled up close together it suggests the market is feeling pretty calm. But when the bands are far it suggests the market is feeling pretty wild.

Remember all videos and information on this site is only for educational purposes and is not intended as investment advice.

Trading Resources

eToro  is one of the world’s leading social investment communities that allows people to grow their knowledge and they offer 0% commissions and the ability to by buy fractional shares and invest exactly how much you want.  Not available in all countries.

MetaStock has been providing award-winning charting and analysis tools for the self-directed trader for over 30 years. Capitalizing on technical analysis, our line of trading software and market data are designed for active traders of all levels so they can backtest, scan and analyze the markets with confidence    Free Trial Free Book Buy One get One Free

Bollinger Bands Example, Bollinger Bands Success Rate, Does Bollinger Bands Work, John Bollinger Bands, John Bollinger On Bollinger Bands, What Are Bollinger Bands Explained

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

en_USEnglish