How Do You Interpret in Trading Where to Place Stop Loss using Bollinger Band Indicator?

Trade Where to Place Stop Loss Order using Bollinger Band Indicator

Determining Where Should You Set a Stop Loss Order using Bollinger Band Indicator?

Bollinger Bands Indicator

Bollinger Bands indicator use standard deviation as a measure of market price volatility. Since standard deviation trading indicator is a measure of volatility, the Bollinger bands are self-adjusting meaning they widen during periods of higher price volatility & contract during periods of lower price volatility.

Bollinger Bands consist of Three Bollinger bands designed to encompass the majority of a trading instruments price action. The middle band is the basis for the intermediate trend, typically it is a 20 period simple MA, which also serves as a base for the upper band as well as lower band. Upper band's distance and lower band's distance from the mid-band is usually determined by volatility.

Since the Bollinger Bands are used to encompass the price action, the Bollinger bands can be used to set stop losses just outside the area of the Bollinger bands.

Where Should I place a Stop Loss Order using Bollinger Band Indicator

How Do I Interpret in XAUUSD Where to Place Stop Loss Order using Bollinger Band Indicator