Double Bollinger Bands Trading Strategy Explained.
// indicator setup tutorial for traders stocks options forex binary chart youtube video pdf david moadel a double Bollinger Band strategy we'regonna put not one but two Bollinger Bands on the screen and let's see whatwe can do with that all right here's an example and this isa close-up and all these charts today are from stockcharts.
com so I wanted togive them credit for that alright so sometimes want to teachpeople about Bollinger Bands you know I might tell them ok you can use the nowthis is the two standard deviation Bollinger Band and this is all thesecharts today are on a daily candlestick chart so each candlestick represents oneday of price action and the blue lines here those would be the two standarddeviation Bollinger Bands alright and that's the standard setting that you'llsee so sometimes I might teach people that you can use this you know thebottom band as a potential buy signal and then you can sell when it reachesthe upper band but you know sometimes people complain that they're not makingenough money from this method they want to let it run more for example in thisin this example as you can see if you bought here at the lower band and thensold at the upper band you'd make a profit but you could have made a muchmuch greater profit you could have let it run a lot more and so what you coulddo is put on the screen not just the two standard deviation Bollinger Bands butalso the three standard deviation Bollinger Bands which are the red lineshere and those are much wider and so in order to let in order to let yourwinners really run you can you know buy at the lower two standard deviationBollinger Band like you normally might do but then don't sell until it hits thethree standard deviation upper band there and as you can see it's reallyrunning here and you would make a much bigger profit potentially than if youwould just sold here after buying here all right and this is what it looks likeon stockcharts.
com this is the standard settings you go down to overlays afteryou plot your you know you put your chart up and then you go to overlays andthen you put your Bollinger Bands on for the standard settings 20 + 2 that's 2020 period and 2 standard deviations and then you put another Bollinger Band onbut this time you have to change it from 20 and 2 to 20 and three standarddeviations all right so it's wider alright so let's look at some examplesthis is Expedia and for example you know if you had bought here when it touchedthe lower to standard deviation band and then you know you would have ended upselling here if you just stuck if you just stuck with the the two standarddeviation bands but if instead you waited until it touched the threestandard deviation upper band which is way up here you would have made a muchbigger profit so it's all about letting your winners run if you use this methodalright here's another example this is Cigna and you know if you had boughthere when it reached the lower two standard deviation Bollinger Band andthen it went down a little bit and if you had sold when it reached the uppertwo standard deviation Bollinger Band you would have made a profit or youcould have let it run and it would have run and run and run all the way up tohere if you had decided not to sell until it had reached the upper threestandard deviation Bollinger Band the wider onehere's another example with Pepsi and this is a really great example becauseif you had bought at the when it touched the lower to standard deviationBollinger Band and if you had done the typical thing of selling when it reachedthe upper to standard deviation Bollinger Band you would have made aprofit from here to here it's not bad but you could have also let it run youcould have decided beforehand I'm not going to sell until it reaches the threestandard deviation Bollinger Band and then you would have made you would havebought here and then it would have run all the way up to here for a really niceprofit and one more example this is eBay and again you could have bought at thelower two standard deviation band got went down a little bit hopefully youwouldn't get shaken out all right and then if you decided to sell at the uppertwo standard deviation band you would have made a profit from here to here youwould have sold here not bad or you could have let it run you could havedecided I'm not going to sell until it reaches the three standard deviationBollinger Band and then it would have run all the way up here it almosttouched it here even if you had sold here that's still better than here butit didn't quite touch it here and notice that it went down but if you had beenpatient there's a double bottom pattern just wait it out write it out andfinally you would have sold way up here and you would you would have made aprofit buying here selling way up here hopefully didn't get shaken out withthis double bottom pattern here and you would have done really nicely alright socheck that out put on not just the standard settings that two standarddeviation Bollinger Bands but throw up the the three standard deviationBollinger Bands if you want to use this double double Bollinger Bands strategyalright so hopefully this was helpful to you ifyou know need more help with technical indicators trading investing optionsstocks whatever it is you can contact me anytime by email my name is David Modelland my email address is David Modell at gmail.
com and if you like this video ifyou found it helpful please give it a thumbs up on YouTube and leave commentsand please subscribe to my youtube channel so you can receive the latestupdates on my financial educational videos thank you so much I appreciate itand I'll talk to you again soon.