Bollinger Bands Strategy Summary

Bollinger Bands indicator is a popular technical analysis indicator that can be used in various ways.

However, like most indicators it should not be used alone. Bollinger bands indicator work best combined with overbought & oversold indicators & oscillators.

Since Bollinger Band uses price volatility to determine the market trend, Index traders should not use technical indicators that duplicate this information. Instead the Bollinger bands indicator should be combined with technical indicators that measure volume or momentum.