Forex Education

[Alex C]

In this article, I will feature a few of the Bollinger Bands reversal patterns that I personally use very often in my trading. These are valuable trading ideas that you can incorporate into your own trading strategies.

Before I jump into details, let me say this…

I always encourage traders to conduct proper backtesting when introducing new tools into your trading plan.

If you wish to discover how you can seamlessly incorporate new Bollinger bands ideas into your existing strategies, I recommend reading my previous post on Forex backtesting.

Very briefly, Bollinger Bands is a tool invented by John Bollinger in the 1980s. The tool consists of one line in the center, and 2 price channel bands above and below the center line.

The center line is usually a 20-period simple moving average, and the upper and lower bands are by default a measure of price levels that are 2 standard deviations from the center. However, there are some extreme markets that may require different parameters, so test it yourself.

Market prices tend to bounce between the upper and lower Bollinger Bands, and this tool can be used in pattern recognition to define and clarify pure price patterns. Today I will show you a few tricks to spot Bollinger Bands reversal patterns with high accuracy.

If you wish to read how to accurately catch reversal signal using bollinger bands, please visit for more in depth materials.
http://forexseriously.com/bollinger-bands-reversal-high-accuracy/