November 26, 2021

How to use the Bollinger band like a pro trader

Indicators are considered blessings for novice traders. If you want to become good at trading, we strongly recommend that you learn to use the indicator systematically. Though there are many indicators that you can use as a currency trader, in this article, we will discuss the Bollinger band indicator. The Bollinger band indicator is a unique tool that provides critical information about the support and resistance level to retail traders. If you learn to use the Bollinger band indicator systematically, the chances are that you will be able to curate a professional trading strategy.

Learning to use the Bollinger band indicator might seem a simple task but it is not. However, if you follow some core rules, you can use the Bollinger band indicator just like a professional trader and make some decent progress without any hassle.

The upper and lower band

Before you start using the Bollinger band, you need to know the functions of the upper and lower band. The upper band acts as a resistance level and the lower band will act as a strong support level. Those who don’t have strong knowledge about the support and resistance level can use the Bollinger band support and resistance level to find reliable trade signals in the market. However, they need to use the indicator in a higher time frame or else they will not get the accurate support and resistance level.

Use it in a demo account

We all know the upper and the lower band of the Bollinger band indicator gives us the indications to take our trades. To trade the market with the help of the Bollinger band indicator, we need to learn its use in the demo account. Feel free to get it from here and strategically use the Bollinger band indicator. Try to trade in the upper and lower band of the indicators in the demo account. As soon as the price tests the upper band, wait for the closing of the candle. If the candlestick closes below the upper band, you may take your short trade. Similarly, if the candlestick closes above the lower band after a bullish bounce, you may take your long trade.

Use the price action signals

The Bollinger band indicators give us a clear indication of the support and resistance level. Those who have strong knowledge about the price action trading method, take their trades at an important level by using the price action confirmation signals. Becoming good at the trading profession is not a tough task. If you want to make significant progress in your life, we strongly recommend that you learn to trade the dynamic band with the help of the price action confirmation signals. Once you become good at that, you will become more skilled with your actions.

Trade in the higher time frame

To get the maximum benefit from the use of the Bollinger band indicator, you should be using it in a higher time frame. If you rely on the lower time frame, the chances are very high that you will never learn to take high-quality trades. The lower time frame trade signals are not that accurate and it often confuses retail traders to a great extent. Though higher time frame trading is boring, it is the only way by which you can maximize your profit by using the Bollinger band indicator.

Tweak its settings

As you become experienced by using the Bollinger band indicator, you should learn to tweak its readings. If you manage to tweak the readings of the Bollinger band indicator in a systematic way, you will become good at trading and thus you will be making more profit in the market. Once you make some significant changes to the indicator settings, make sure you test the functions of the indicator in the demo accounts.