Apr

7

 Bollinger Bands are frequently deployed in multiples, with the most popular multiple probably being threes with upper and lower bands of one, two and three standard deviations.

From my perspective Bollinger Bands define whether prices are high or low on a relative basis. However, just as many authors find that the books others have read are not necessarily the books they wrote, Bollinger Bands are used for lots of things that I never conceived of. Enjoy and please report back on your success or lack thereof.


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6 Comments so far

  1. Valery Kotlarov on April 9, 2009 4:08 am

    I guess it's time to split this website into two parts. One is where all the technical analysis etc will be and the other, for those who've read Vic and Laurel's books..

  2. vniederhoffer on April 9, 2009 2:13 pm

    Mr Bollinger and I find a meeting of the minds more often than not. In his practice he is most scientific, and I admire him. vic

  3. Mandingo on April 10, 2009 1:43 am

    Valery, your comment is of the uttermost ignorance.

  4. Valery Kotlarov on April 10, 2009 11:47 am

    Mr. Bollinger,

    Please do not be offended, I have nothing against Bollinger Bands. Especially I didn’t notice that you are the real creator of B.B. I just offered something that can be completely ignored. It was not intended for you but for the owners of this website.

    I admire Vic, and therefore I’m here.

    Mandingo,

    Mr. Bollinger can be admired by different people including Vic. And I want to admire him too, just need to know more about these bands. Currently I categorize these bands under the Technical Analysis label, pardon (yes i’ve read several books on T.A. and it was long time ago).

    So you could be right about my ignorance. Just would be cool to give you a “free word” so you might want to describe and/or open the discussion about B.B. to let people like me a chance to know the “truth”.

    Thanks.

    Val

  5. Todd Huff on April 13, 2009 12:28 am

    Mr. Bollinger,I thought you might like to know that your bands helped de-program me, overcoming my infatuation with Elliott Wave mysticism (your Bands and Dr. Niederhoffer's writings as well). I use your bands primarily as an intraday breakout == trend method for the e-minis and crude oil. With some additional momentum analysis, they work quite well for me in the lower deviation areas.A standard deviation, is a standard deviation… who knows what the heck X, 3, A, B, C Wave we're in at any given time? Thank you for your work and commentary. Todd Huff

  6. Craig Bowles on November 9, 2013 9:30 am

    For whatever reason, people don’t pay attention to lagging indicators and I think they are the most useful. As Victor Zarnowitz once said, “you have to know where you’ve been and where you are now to know where you are going.” So, I like to watch the lower bands in bull moves and upper bands in bear moves.

    Another use is the spread. The full upper to lower spread is helpful when estimating breakouts from a flat range. At turning points, the lower to mid-band is used for tops and upper to mid-band is used for bottoms. Monthly charts give you some pretty wild numbers but S&P 725 turned out to be a good low target in the last bear and 2350 seems just as crazy to the upside for this bull. Similarly, gold’s worst case scenario is the monthly spread at the top suggesting 900 downside. Weekly charts give more conservative targets on both and similar to where we are now.

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